Question No 32 Chapter 2 – UNIMAX Class 12 Part 2 – 2021
Table of Contents
On 1st April, 2021, Reetu Ltd. issued 20,000. 9% debenture of ₹100 each at a discount of 10% redeemable at par after 5 years. The issue price is payable along with application. The debentures were subscribed. It has a balance of ₹ 2,70,000 in Securities premium reserve.
Pass journal entries for issue of debenture and writing off the discount and prepare discount on issue of debenture account.
The solution of Question 32 Chapter 2 of +2 Part-2: –
JOURNAL
BOOKS OF REETU LTD.
| Date | Particulars |
L.F. | Debit | Credit | |
| 2021 | |||||
| April 1 | Bank A/c | Dr. | 18,00,000 | ||
| To Debenture holder A/c | 18,00,000 | ||||
| (Being application money received for 20,000; 9% debentures) | |||||
| Debentures application & allotment A/c | Dr. | 18,00,000 | |||
| Discount on issue of debenture A/c | Dr. | 2,00,000 | |||
| To Debentures A/c | 20,000 | ||||
| (Being 20,000; 9% debenture of ₹ 100 each issue at 10% discount) | |||||
| 2022 | |||||
| March 31 | Securities premium reserve A/c | Dr. | 20,00,000 | ||
| To Discount on issue of debenture A/c | 20,00,000 | ||||
| (Being discount on issue of debenture written off) | |||||
DISCOUNT ON ISSUE OF DEBENTURES ACCOUNT
| Date | Particulars |
Dr. ₹ | Date | Particulars | CR. ₹ |
| 2021 | 2022 | ||||
| April 1 | To 9% Debentures A/c | 1,00,000 | March 31 | By Securities Premium Reserve A/c | 1,00,000 |
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Share Capital: Meaning, Types, and Classes
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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