Question no 38 Chapter 2 - UNIMAX Class 12 Part 2

Question No 38 Chapter 2 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question 38 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 1^st April, 2021, Ashok Ltd. issued 5,000, 6% debenture of ₹ 700 each at a premium of 5% and redeemable at a premium of 10% after 5 years. According to the terms of issue ₹ 280 was payable on application and balance on allotment. Record necessary entries regarding issue of debenture and writing off loss on issue of debentures.

The solution of Question 38 Chapter 2 of +2 Part-2: –

Journal

Date	Particulars		L.F.	Debit	Credit
2021
April 1	Bank A/c	Dr.		14,00,000
	To Debenture Application A/c				14,00,000
	(Being application money received on 5,000 debenture @ ₹ 280 each)
April 1	Debenture Application A/c	Dr.		14,00,000
	To Debenture A/c				14,00,000
	(Being application money adjusted)
April 1	Debenture allotment A/c	Dr.		22,75,000
	Loss on issue of debentures A/c	Dr.		3,50,000
	To Debenture A/c				21,00,000
	To Premium on Redemption A/c				3,50,000
	To Securities premium reserve A/c				1,75,000
	(Being allotment money due on 5,000 debenture @ ₹ 455 per debenture including premium of ₹ 35 each and redeemable at 10% premium)
April 1	Bank A/c	Dr.		22,75,000
	To Debenture allotment A/c				22,75,000
	(Being allotment money received)
2022
March 31	Securities premium reserve A/c	Dr.		1,75,000
	Statement of Profit & Loss A/c	Dr.		1,75,000
	To Loss on issue of debenture A/c				3,50,000
	(Being loss on issue of debenture written off)