CBSE Class 12-commerce Answered

Journal Entries 

Sr. No.

Particulars

L.F.

Debit

Rs

Credit

Rs

a.

Bank A/c

Dr.

4,32,000

------To Debenture Application and Allotment A/c

4,32,000

(Being application money received on 4,000 9% debentures )

Debenture Application and Allotment A/c

Dr.

4,32,000

Loss on Issue of Debentures A/c

Dr.

40,000

------To 9% Debenture A/c

4,00,000

------To Securities Premium Reserve A/c

32,000

------To Premium on Redemption of debentures A/c

40,000

(Being 4,000 9% debenture issued at a premium of `8 and redeemable at premium of 10%)

b.

Bank A/c

Dr.

6,00,000

------To Debenture Application and Allotment A/c

6,00,000

(Being application money received on 6,000 9% debentures)

Debenture Application and Allotment A/c

Dr.

6,00,000

Loss On Issue of Debentures A/c

Dr.

60,00

------To 9% Debenture A/c

6,00,000

------To premium on Redemption of Debentures A/c

60,000

(Being 6,000 9Þbenture issued at par and redeemable at premium of 10%)

c.

Bank A/c

Dr.

10,50,000

------To Debenture Application and Allotment A/c

10,50,000

(Being application money received on 10,000 9% debentures)

Debenture Application and Allotment  A/c

Dr.

10,50,000

------To 9% Debenture A/c

10,00,000

------To Securities Premium Reserve A/c

50,000

(Being 1,000 9% debentures issued at a premium of `5)