Question 9 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 9 Chapter 9 of +2-A

Table of Contents

The solution of Question 9 Chapter 9 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

9. Iron Products Ltd. issued 5,000; 9% Debentures of ₹ 100 each at a premium of ₹ 40 payable as follows;
(i) ₹ 40, including a premium of ₹ 10 on applications;
(ii) ₹ 45, including a premium of ₹ 15 on allotment; and
(iii) Balance as first and final call.The issue was subscribed and allotment made. Calls were made and the due amount was received.
Pass Journal entries.

The solution of Question 9 Chapter 9 of +2-A: –


Date	Particulars		L.F.	Debit	Credit
	Bank A/c	Dr		2,00,000
	To 9%Debenture application A/c				2,00,000
	(Being the application money received )
	9% Debenture application A/c	Dr		2,00,000
	To 9% Debenture A/c				1,50,000
	To 9% Debenture allotment/c				50,000
	(Being application money transferred to equity share capital )
	9%Debenture allotment A/c	Dr		2,25,000
	To 9%Debebture A/c				1,50,000
	To Securities Premium A/c				75,000
	(Being the allotment money due with security premium )
	Bank A/c	Dr		2,25,000
	To 9% Debenture Allotment A/c				2,25,000
	(Being application money transferred to equity share capital )
	9%Debenture First and final call A/c	Dr		2,75,000
	To 9% Debenture A/c				2,00,000
	To Securities Premium A/c				75,000
	(Being the first and final call money due )
	Bank A/c	Dr		2,75,000
	To 9%Debenture first and final call A/c				2,75,000
	(Being first and final call money received )