Question no 37 Chapter 2 - UNIMAX Class 12 Part 2

Question No 37 Chapter 2 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question 37 Chapter 2 of +2 Part-2: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

On 1st April, 2021, Sneha Ltd issued 10,000,9%, debenture of ₹ 100 each at a premium of 5% and redeemable at a premium of 10 after 7 years. According to the terms of issue, ₹ 40 was payable on application and balance on allotment. Record necessary entries regarding issue of debentures and writing off loss issue of debentures.

The solution of Question 37 Chapter 2 of +2 Part-2: –

Journal

Date	Particulars		L.F.	Debit	Credit
2021
April 1	Bank A/c	Dr.		4,00,000
	To Debenture Application A/c				4,00,000
	(Being application money received on 10,000 debenture @ ₹ 40 each)
April 1	Debenture Application A/c	Dr.		4,00,000
	To Debenture A/c				4,00,000
	(Being application money adjusted)
April 1	Debenture allotment A/c	Dr.		6,50,000
	Loss on issue of debentures A/c	Dr.		1,00,000
	To Debenture A/c				6,00,000
	To Premium on Redemption A/c				1,00,000
	To Securities premium reserve A/c				50,000
	(Being allotment money due on 10,000 debenture @ ₹ 65 per debenture including premium of ₹ 5 each and redeemable at 10% premium)
April 1	Bank A/c	Dr.		6,50,000
	To Debenture allotment A/c				6,50,000
	(Being allotment money received)
2022
March 31	Securities premium reserve A/c	Dr.		50,000
	Statement of Profit & Loss A/c	Dr.		50,000
	To Loss on issue of debenture A/c				1,00,000
	(Being loss on issue of debenture written off)