Question 1

Question 1 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 1 Chapter 9 of +2-A
1. Vishwas Ltd. issued 2,000; 9% Debentures of ₹ 100 each payable as follows:₹ 25 on the application; ₹ 25 on the allotment and ₹ 50 on first and final call.Applications were received for all the debentures along with the application money did allotment was made. Call money was also received on the due date.Pass necessary Journal entries in the books of the company.
The solution of Question 1 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Question 2

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

Sarbjit Singh · Accepted Answer

Question 2 Chapter 9 of +2-A
2. An Ltd. issued 2,000; 9% Debentures of ₹ 100 each on the following terms:₹20 on applications;₹ 20 on allotment; ₹ 30 on the first call; ₹ 30 on final call.The public applied for 2,400 debentures. Applications for 1,800 debentures were accepted in full. Applications for 400 debentures were allotted 200 debentures and applications for 200 debentures were rejected. Pass necessary Journal entries.
The solution of Question 2 Chapter 9 of +2-A: -

Date
P

Question 3

Question 3 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 3 Chapter 9 of +2-A
3.ABC ltd. Issued. 40,000; 10% debenture of Rs 100 each at par cash payable in full along with application were received for 60,000 debenture were allotted and excess application money was refunded. Pass journal entries in the books of the company.
The solution of Question 3 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Bank A/c
Dr
 
6,00,000

To 9%Debenture application A/c
 
 
 
6,00,000

(Being the application money received

Question 4

Question 4 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 4 Chapter 9 of +2-A
4. Narain Laxmi Ltd. Invited application for issuing applications for issuing 7,500 12%Debenture of Rs 100 each.at a premium of Rs 35 per debenture. The full amount was payable on application. The application was received for 10,000 debenture. Allotment as made to all the application on pro-rata basis. Pass necessary journal entries for the above transactions in the books of Narain Laxmi ltd.
The solution of Question 4 Chapter 9 of +2-A: -

Date
Parti

Question 5

Question 5 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 5 Chapter 9 of +2-A
5.Raj Ltd . issued 5,000;  8% Debentures of ₹ 100 each at a premium of 5% payable as follows:₹ 10 on application ; ₹ 20 along with premium on allotment and balance on first and final call.Pass necessary Journal entries.
The solution of Question 5 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Bank A/c
Dr
 
50,000

To 8%Debenture application A/c
 
 
 
50,000

(Being the application money received )

8% Debenture appl

Question 6

Question 6 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 6 Chapter 9 of +2-A
6. Nipa Limited issued ₹ 10,00,000 Debentures of ₹ 100 each at a premium of 10%, payable 25% on application (including premium) and the balance on the allotment. The debentures were applied for and the amount was duly received.You are required to give Journal entries and prepare Cash Book.
The solution of Question 6 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Bank A/c
Dr
 
2,50,000

To 8%Debenture application A/c
 
 
 
1,50,000

Question 7

Question 7 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 7 Chapter 9 of +2-A
7. Vijay Laxmi Ltd. invited applications for 10,000; 12% Debentures of ₹ 100 each at a premium of ₹ 70 per debenture. The full amount was payable on application.Applications were received for 13,500 debentures. Applications for 3,500 debentures were rejected and application money was refunded. Debentures were allotted to the remaining applications.
The solution of Question 7 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Bank A/c
Dr

Question 8

Question 8 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 8 Chapter 9 of +2-A
8.Raj Ltd . issued 5,000;  8% Debentures of ₹ 100 each at a premium of 5% payable as follows:₹ 10 on the application ; ₹ 20 along with premium on allotment and balance on first and final call.Pass necessary Journal entries.
The solution of Question 8 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Bank A/c
Dr
 
22,95,000

To 12%Debenture application A/c
 
 
 
22,95,000

(Being the application money received )

12%Deb

Question 9

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

Sarbjit Singh · Accepted Answer

Question 9 Chapter 9 of +2-A
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

Question 10

Question 10 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 10 Chapter 9 of +2-A
10. X Ltd. issued 12,000; 8% Debentures of ​₹  100 each at a discount of 5% payable as 25% on the application;20% on allotment and balance after three months.Pass Journal entries.
The solution of Question 10 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Bank A/c
Dr
 
3,00,000

To 8%Debenture application A/c
 
 
 
3,00,000

(Being the application money received )

8% Debenture application A/c
Dr
 
3,00,000

To

Question 11

Question 11 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 11 Chapter 9 of +2-A
11. X Ltd. issued 12,000; 8% Debentures of ​₹  100 each at a discount of 5% payable as 25% on the application;20% on allotment and balance after three months.Pass Journal entries.
The solution of Question 11 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Bank A/c
Dr
 
25,00,000

To Debenture application A/c
 
 
 
25,00,000

(Being the application money received )

Debenture application A/c
Dr
 
25,00,000

To 10

Question 12

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

Sarbjit Singh · Accepted Answer

Question 12 Chapter 9 of +2-A
12. Amrit Ltd . was promoted by Amrit and Bhaskar with an authorised capital of ​₹  10,00,000 divide into 1,00,000 shares of ​₹  10 each.The company decided to issue 1,000,6% Debentures of ​₹  100 each to Amrit and Bhaskar each for their services in incorporating the company.Pass journal entry.
The solution of Question 12 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Incorporation Cost A/c
Dr
 
2,00,000

To 6%Debenture A/c

Question 13

Question 13 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 13 Chapter 9 of +2-A
13. Joy Ltd. company bought a Building for ​₹  9,00,000 and the consideration was paid by issuing 10% Debentures of the normal (face) value of ​₹ 100 each at a discount of 10%.Give Journal entries.
The solution of Question 13 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Building A/c
Dr
 
9,00,000

To Vendor A/c
 
 
 
9,00,000

(Being asset purchased )

Vendor A/c
Dr
 
8,10,000

Discount on Issue of Debenture A

Question 14

Question 14 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 14 Chapter 9 of +2-A
14. Wye Ltd . purchased an established business for ​₹  2,00,000 payable as ​₹  65,000 by cheque and the balance by issuing 9% Debentures of ​₹  100 each at a discount of 10%.Give journal entries in the books of Wye Ltd.
The solution of Question 14 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Sundry assets A/c
Dr
 
9,00,000

To Vendor A/c
 
 
 
9,00,000

(Being asset purchased )

Vendor A/c
Dr
 
9,00,000

To B

Question 15

Question 15 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 15 Chapter 9 of +2-A
15. Newton Ltd. purchased a Machinery from B for ​₹  5,76,000 to be paid by the issue of 9% Debentures of ​₹  100 each at 4% discount. Journalise the transactions.
The solution of Question 15 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Machine A/c
Dr
 
5,76,000

To B A/c
 
 
 
5,76,000

(Being asset purchased )

Vendor A/c
Dr
 
5,76,000

Discount on Issue of Debenture A/c
Dr
 
24,000

To 6%Debenture A/c

Question 16

Question 16 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 16 Chapter 9 of +2-A
16. Reliance Ltd. purchased machinery costing ​₹  1,35,000. It was agreed that the purchase consideration is paid by issuing 9% Debentures of ​₹  100 each. Assume debentures have been issued(i) at par and(ii)at a discount of 10%.Give necessary journal entries.
The solution of Question 16 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Machine A/c
Dr
 
1,35,000

To Vendor A/c
 
 
 
1,35,000

(Being asset purchased )

V

Question 17

Question 17 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 17 Chapter 9 of +2-A
17. Deepak Ltd purchased furniture of ₹ 2,20,000 from M/s. Furniture Mart. 50% of the amount was paid to M/s. Furniture Mart by accepting a Bill of Exchanged and for the balance the company issued 9% Debenture of ​₹  100 each at a premium of 10% in favour of M/s. Furniture Mart.Pass Journal entries in the books of Deepak Ltd. 
The solution of Question 17 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Furniture A/c
Dr
 
1,35,000

T

Question 18

Question 18 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 18 Chapter 9 of +2-A
18. Bright Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of Star Ltd. for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 12% Debentures of ₹ 100 each. Give necessary Journal entries in the books of Bright Ltd., assuming that:Case (a): The debentures are issued at par.Case (b): The debentures are issued at 20% premium.Case (c): The debentures are issued at 10% discount. 
The solution of Questi

Question 19

Question 19 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 19 Chapter 9 of +2-A
19.Star Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of Moon Ltd. for ₹ 6,00,000. Give necessary Journal entries in the books of Star Ltd. assuming that:Case (a): The purchase consideration was payable 10% in cash and the balance in 5,400; 12% Debentures of ₹ 100 each.Case (b): The purchase consideration was payable 10% in cash and the balance in 4,500; 12% Debentures of ₹ 100 each issued at 20% premium.. 
The solution of Question 19 Chapter

Question 20

Question 20 Chapter 9 of +2-A - T.S. Grewal 12 Class

Sarbjit Singh · Accepted Answer

Question 20 Chapter 9 of +2-A
20. Romi Ltd. acquired assets of  ₹ 20 lakhs and took over creditors of  ₹ 2 lakhs from Kapil Enterprises.Romi Ltd. issued 8% Debentures of  ₹ 100 each at a discount of 25% as purchase consideration.Record necessary journal entries in the books of Romi Ltd.
The solution of Question 20 Chapter 9 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

Assets A/c
Dr
 
20,00,000

To Creditors A/c
 
 
 
2,00,000

To Kapil Enterprises A/c
 
 
 
18,00,00

Particulars		Debit	Credit

Bank A/c	Dr	50,000
To 9%Debenture application A/c			50,000
(Being the application money received )

9% Debenture application A/c	Dr	50,000
To 9% Debenture A/c			50,000
(Being application money transferred to equity share capital )

9%Debenture allotment A/c	Dr	50,000
To 9%Debebture A/c			50,000
(Being the first call money due )

Bank A/c	Dr	50,000
To 9% Debenture Allotment A/c			50,000
(Being allotment money received )

9%Debenture First and Final call A/c	Dr	1,00,000
To 9% Debenture A/c			1,00,000
(Being share forfeited )

Bank A/c	Dr	1,00,000
To 9%Debenture first, call A/c			1,00,000
(Being first call money received )

T.S. Grewal 12 Class Book Keeping Part - A - Vol. 2 Solutions Chapter No. 9 - Issue of Debentures

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Table of Contents

Question 1 Chapter 9 of +2-A - T.S. Grewal 12 Class

The solution of Question 1 Chapter 9 of +2-A: -

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

Question 3 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 4 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 5 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 6 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 7 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 8 Chapter 9 of +2-A - T.S. Grewal 12 Class

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

Question 10 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 11 Chapter 9 of +2-A - T.S. Grewal 12 Class

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

Question 13 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 14 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 15 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 16 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 17 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 18 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 19 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 20 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 21 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 22 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 23 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 24 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 25 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 26 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 27 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 28 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 29 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 30 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 31 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 32 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 33 Chapter 9 of +2-A

Question 34 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 35 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 36 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 37 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 38 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 39 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 40 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 41 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 42 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 43 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 44 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 45 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 46 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 47 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 48 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 49 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 50 Chapter 9 of +2-A - T.S. Grewal 12 Class

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