Double Entry Book Keeping Ts Grewal (2017) Solutions for Class 12 Commerce Accountancy Chapter 7 Joint Stock Company Accounts Issue Of Debentures are provided here with simple step-by-step explanations. These solutions for Joint Stock Company Accounts Issue Of Debentures are extremely popular among class 12 Commerce students for Accountancy Joint Stock Company Accounts Issue Of Debentures Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Double Entry Book Keeping Ts Grewal (2017) Book of class 12 Commerce Accountancy Chapter 7 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Double Entry Book Keeping Ts Grewal (2017) Solutions. All Double Entry Book Keeping Ts Grewal (2017) Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.

Page No 7.48:

Answer:

Journal
Date Particulars L.F. Debit
Amount
(Rs)
Credit
Amount
(Rs)
  Bank A/c Dr.   50,000  
 
To Debenture Application A/c
      50,000
  (Application money received on 2,000 debentures)        
           
  Debenture Application A/c Dr.   50,000  
 
To 8% Debentures A/c
      50,000
  (Application money transferred to Debentures Account)      
           
  Debenture Allotment A/c Dr.   50,000  
 
To 8% Debentures A/c
      50,000
  (Allotment money due on 2,000 debentures)        
           
  Bank A/c Dr.   50,000  
 
To Debenture Allotment A/c
      50,000
  (Allotment money received on 2,000 debentures)        
           
  Debenture First and Final Call A/c Dr.   1,00,000  
 
To 8% Debentures A/c
      1,00,000
  (First and final call due on 2,000 debentures)        
           
  Bank A/c Dr.   1,00,000  
 
To Debenture First and Final Call A/c
      1,00,000
  (Amount received on first and final call)        
           



Page No 7.49:

Answer:

Journal
Date Particulars L.F. Debit
Amount
(Rs)
Credit
Amount
(Rs)
  Bank A/c Dr.   60,00,000  
 
To Debenture Application and Allotment A/c
      60,00,000
  (Application money received on 60,000 debentures)      
           
  Debenture Application and Allotment A/c Dr.   60,00,000  
 
To 10% Debentures A/c
      40,00,000
 
To Bank A/c
      20,00,000
  (Application money transferred to Debentures Account and excess money refunded)      
           

Page No 7.49:

Answer:

Books of A Ltd.

Journal

Date

Particular

L.F.

Debit Amount

Rs

Credit Amount

Rs

 

Bank A/c

Dr.

 

48,000

 

 

To 9% Debenture Application A/c

 

 

48,000

 

(Debenture application money received for 2,400 debentures at Rs 20 each)

 

 

 

 

 

 

 

 

 

9% Debenture Application A/c

Dr.

 

48,000

 

 

To 9% Debentures A/c

 

 

40,000

 

To 9% Debentures Allotment A/c

 

 

4,000

 

To Bank A/c

 

 

4,000

 

(Debenture application money transferred to 9% Debenture account for 2,000 Debenture, adjusted to Debenture Allotment account for 200 Debentures and money refunded for 200 debentures)

 

 

 

 

 

 

 

 

 

9% Debenture Allotment A/c

Dr.

 

40,000

 

 

To 9% Debentures A/c

 

 

40,000

 

(Debenture allotment money due on 2,000 debentures at Rs 20 each)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

36,000

 

 

To 9% Debentures Allotment A/c

 

 

36,000

 

(Debenture allotment money received)

 

 

 

 

 

 

 

 

 

Debenture First Call A/c

Dr.

 

60,000

 

 

To 9% Debentures A/c

 

 

60,000

 

(Debenture first call money due on 2,000 9% debenture at Rs 30 each)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

60,000

 

 

To Debenture First Call A/c

 

 

60,000

 

(Debenture first call money received)

 

 

 

 

 

 

 

 

 

Debenture Final Call A/c

Dr.

 

60,000

 

 

To 9% Debentures A/c

 

 

60,000

 

(Debentures final call money due on 2,000 9% Debentures at Rs 30 each)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

60,000

 

 

To Debenture Final Call A/c

 

 

60,000

 

(Debenture final call received on 2,000 9% Debenture at Rs 30 each)

 

 

 

 

 

 

 

 

Page No 7.49:

Answer:

Journal
Date Particulars L.F. Debit
Amount
(Rs)
Credit
Amount
(Rs)
  Bank A/c Dr.   50,000  
 
To Debentures Application A/c
      50,000
  (Applications money received for 5,000, 8% debentures @ Rs 10 per debenture)      
           
  Debentures Application A/c Dr.   50,000  
 
To 8% Debentures A/c
      50,000
  (Application money transferred to 8% Debentures A/c)      
           
  Debenture Allotment A/c (5,000 × 20) Dr.   1,00,000  
 
To 8% Debentures A/c (5,000 × 15)
      75,000
 
To Securities Premium A/c (5,000 × 5)
      25,000
  (Allotment money due on 5,000 debentures)        
           
  Bank A/c Dr.   1,00,000  
 
To Debentures Allotment A/c
      1,00,000
  (Allotment money received on 5,000 debentures)        
           
  Debenture First and Final Call A/c (5,000 × 75) Dr.   3,75,000  
 
To 8% Debentures A/c
      3,75,000
  ( Amount due on first call @ Rs 75 per debenture)        
           
  Bank A/c Dr.   3,75,000  
 
To Debentures First and Final Call A/c
      3,75,000
  (Amount received on first call)        
         
 
Balance Sheet of X Lt.d
as at …..
Particulars Note
No.
Amount
(Rs)
I. Equity and Liabilities    
1. Shareholders’ Funds
   
a. Share Capital
   
b. Reserves and Surplus
1 25,000
2. Non-Current Liabilities
   
a. Long-term Borrowings
2 5,00,000
Total   5,25,000

II. Assets
   
2. Current Assets
   
a. Cash and Cash Equivalents
3 5,25,000
Total   5,25,000
     
 
NOTES TO ACCOUNTS
Note
No.
Particulars Amount (Rs)
1 Reserves and Surplus  
 
Securities Premium
25,000
2 Long Term Borrowings  
 
5,000, 8% Debentures of Rs 100 each
5,00,000
3 Cash and Cash Equivalents  
 
Cash at Bank
5,25,000
     

Page No 7.49:

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

Bank A/c (3000×30)

Dr.

 

90,000

 

 

  To Debenture Application A/c

 

 

 

90,000

 

(Received application money on 3,000 debentures)

 

 

 

 

 

 

 

 

 

 

 

Debenture Application A/c

Dr.

 

90,000

 

 

  To 10% Debentures A/c

 

 

 

60,000

 

  To Securities Premium Reserve A/c (3,000×10)

 

 

 

30,000

 

(Transfer of application money to Debentures A/c)

 

 

 

 

 

 

 

 

 

 

 

Debenture Allotment A/c (3,000×40)

Dr.

 

1,20,000

 

 

  To 10% Debentures A/c (3,000×20)

 

 

 

60,000

 

  To Securities Premium Reserve A/c (3,000×20)

 

 

 

60,000

 

(Allotment due on 3,000 Debentures at a premium of Rs 20 per Debentures)

 

 

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

1,20,000

 

 

  To Debenture Allotment A/c

 

 

 

1,20,000

 

(Allotment money received)

 

 

 

 

 

 

 

 

 

 

 

Debenture First and Final Call  A/c (3,000×60)

 

 

1,80,000

 

 

  To 10% Debentures A/c

 

 

 

1,80,000

 

(First and Final Call  due on 3,000 Debentures at Rs 60 per Debentures)

 

 

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

1,80,000

 

 

  To Debenture First and Final Call  A/c

 

 

 

1,80,000

 

(First and Final Call  money received)

 

 

 

 

 

 

 

 

 

 

Page No 7.49:

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

Bank A/c (5,000×40)

Dr.

 

2,00,000

 

 

  To Debenture Application A/c

 

 

 

2,00,000

 

(Application money received)

 

 

 

 

 

 

 

 

 

 

 

Debenture Application A/c

Dr.

 

2,00,000

 

 

  To 9% Debentures A/c (5,000×30)

 

 

 

1,50,000

 

  To Security Premium Reserve A/c (5,000×10)

 

 

 

50,000

 

(Application money adjusted)

 

 

 

 

 

 

 

 

 

 

 

Debenture Allotment A/c (5,000×45)

Dr.

 

2,25,000

 

 

  To 9% Debentures A/c  (5,000×30)

 

 

 

1,50,000

 

  To Security Premium Reserve A/c (5,000×15)

 

 

 

75,000

 

(Allotment money due)

 

 

 

 

 

 

 

 

 

 

 

Bank A/c (5,000×45)

Dr.

 

2,25,000

 

 

   To Debenture Allotment A/c

 

 

 

2,25,000

 

(Allotment money received)

 

 

 

 

 

 

 

 

 

 

 

 Debenture First and Final call A/c (5,000×55)

Dr.

 

2,75,000

 

 

  To 9% Debentures A/c (5,000×40)

 

 

 

2,00,000

 

  To Security Premium Reserve A/c (5,000×15)

 

 

 

75,000

 

(First call money due)

 

 

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

2,75,000

 

 

  To Debenture Final and Final call A/c

 

 

 

2,75,000

 

(First Call money Received)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page No 7.49:

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

Bank A/c (2,500 × 90)

Dr.

 

2,25,000

 

 

  To Debenture Application & Allotment A/c

 

 

 

2,25,000

 

(Received application money on 2,500 debentures)

 

 

 

 

 

 

 

 

 

 

 

Debenture Application & Allotment A/c (2,500 ×90)

Dr.

 

2,25,000

 

 

Discount on Issue of Debentures A/c(2,500×10)

Dr.

 

25,000

 

 

  To 9% Debentures A/c

 

 

 

2,50,000

 

(Transfer of application money to Debentures A/c)

 

 

 

 

 

 

 

 

 

 

Page No 7.49:

Answer:

Journal
Date Particulars L.F. Debit
Amount
(Rs)
Credit
Amount
(Rs)
  Bank A/c Dr.   2,50,000  
 
To Debenture Application A/c
      2,50,000
  (Application money received on 10,000 debentures)        
           
  Debenture Application A/c Dr.   2,50,000  
 
To 10% Debentures A/c
      2,50,000
  (Application money transferred to Debentures Account)      
           
  Debenture Allotment A/c Dr.   6,50,000  
  Discount on Issue of Debentures A/c     1,00,000  
 
To 10% Debentures A/c
      7,50,000
  (Allotment money due on debentures)        
           
  Bank A/c Dr.   6,50,000  
 
To Debenture Allotment A/c
      6,50,000
  (Amount received on allotment)        
           

Page No 7.49:

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

 

 

 

 

 

 

Incorporation Cost A/c (2,000 × 100)

Dr.

 

2,00,000

 

 

  To 6% Debentures A/c

 

 

 

2,00,000

 

( Debentures issued to promoters)

 

 

 

 

 

 

 

 

 

 

 

Page No 7.49:

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

Bank A/c (5,000 × 110)

Dr.

 

5,50,000

 

 

  To Debenture Application &  Allotment A/c

 

 

 

5,50,000

 

(Received application money on 5,000 debentures)

 

 

 

 

 

 

 

 

 

 

 

Debenture Application &  Allotment A/c (5,000 × 110)

Dr.

 

5,50,000

 

 

  To 8% Debentures A/c (5,000 × 100)

 

 

 

5,00,000

 

  To Securities Premium Reserve A/c (5,000 ×10)

 

 

 

50,000

 

(Transfer of application money to Debentures A/c)

 

 

 

 

 

 

 

 

 

 

 

Underwriting Commission A/c

Dr.

 

27,500

 

 

  To Basu A/c 

(Underwriting Commission made due)

 

 

 

27,500

 

 

 

 

 

 

 

Basu A/c

Dr.

 

27,500

 

 

  To 8% Debentures A/c (250 ×100)

 

 

 

25,000

 

  To Securities Premium Reserve A/c (250×10)

 

 

 

2,500

 

(Debentures issued to Underwriters)

 

 

 

 

Working Notes:

Underwriting Commission=5,50,000×5%=Rs 27,500Number of Debentures to be Issued=27,500110=250 Debentures

Page No 7.49:

Answer:

Journal
Date Particulars L.F. Debit
Amount
(Rs)
Credit
Amount
(Rs)
  Entry for all cases        
  Assets A/c Dr.   6,60,000  
  Goodwill A/c (Balancing Figure) Dr.   20,000  
 
To Liabilities A/c
      80,000
 
To Y Ltd.
      6,00,000
  (Purchased assets and liabilities of Y Ltd.)        
           
Case (a) Y Ltd. Dr.   6,00,000  
 
To 12% Debentures A/c
      5,40,000
 
To Cash A/c (10% of 6,00,000)
      60,000
  (Issue of 12% debentures at par)        
           
Case (b) Y Ltd. Dr.   6,00,000  
 
To 12% Debentures A/c (WN1)
      4,50,000
 
To Securities Premium A/c
      90,000
 
To Cash A/c (10% of 6,00,000)
      60,000
  (Issue of 12% debentures at 20% premium)        
           
Case (c) Y Ltd. Dr.   6,00,000  
  Discount on Issue of Debentures A/c (WN2) Dr.   60,000  
 
To 12% Debentures A/c
      6,00,000
 
To Cash A/c (10% of 6,00,000)
      60,000
  (Issue of 12% debentures at 10% discount)        
           

Working Notes:

WN 1: Calculation of number of debentures issued
 
No. of debentures issued = Purchase ConsiderationIssue Price of Debentures=5,40,000 (6,00,00060,000)100+20=4,500

WN 2: Calculation of number of debentures issued
 
No. of debentures issued = Purchase ConsiderationIssue Price of Debentures=5,40,000 (6,00,00060,000)10010=6,000



Page No 7.50:

Answer:

Journal
Date Particulars L.F. Debit
Amount
(Rs)
Credit
Amount
(Rs)
  Assets A/c Dr.   2,50,000  
  Goodwill A/c (Balancing Figure) Dr.   1,10,000  
 
To Liabilities A/c
      30,000
 
To Goneby Co.
      3,30,000
  (Purchase of Assets and Liabilities of Goneby Ltd.)      
           
  Goneby Co. Dr.   3,30,000  
 
To _ % Debentures A/c
      3,00,000
 
To Securities Premium A/c
      30,000
  (Issue of debentures at 10% premium)      
           

Working Notes: Calculation of Number of Debentures issued

No. of debentures issued = Purchase ConsiderationIssue Price of Debentures=3,30,000 110=3,000

Page No 7.50:

Answer:

Journal
Date Particulars L.F. Debit
Amount
(Rs)
Credit
Amount
(Rs)
  Sundry Assets A/c Dr.   5,40,000  
 
To A Ltd.
      5,40,000
  (Purchased business of A Ltd.)        
           
  A Ltd. Dr.   5,40,000  
 
To 9% Debentures A/c
      4,00,000
 
To Securities Premium A/c
      40,000
 
To Bank A/c
      1,00,000
  (Payment made to A Ltd partially through cheque and  remaining by issue of 9% debentures at 10% premium)      
           

Working Notes: Calculation of Number of Debentures issued

No. of debentures issued = Purchase ConsiderationIssue Price of Debentures=4,40,000 110=4,000

Page No 7.50:

Answer:

Journal
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
  Machinery A/c Dr.   6,30,000  
 
To B’s A/c
      6,30,000
  (Machinery purchased from B)        
           
  B’s A/c Dr.   6,30,000  
 
To 10% Debentures A/c
      6,00,000
 
To Securities Premium A/c
      30,000
  (Issued 10% debentures at 5% premium to B for purchase consideration)      
           

Working Notes: Calculation of Number of Debentures issued

No. of debentures issued = Purchase ConsiderationIssue Price of Debentures=6,30,000  105= 6,000 

Page No 7.50:

Answer:

Journal
Date Particulars L.F. Debit
Amount
(Rs)
Credit
Amount
(Rs)
  Plant and Machinery A/c Dr.   10,00,000  
 
To Vendor’s A/c
      10,00,000
  (Purchased plant and machinery from the vendor)        
           
  Vendor’s A/c Dr.   10,00,000  
  Discount on Issue of Debentures A/c Dr.   75,000  
 
To 10% Debenture A/c
      7,50,000
 
To Cash A/c
      3,25,000
  (Payment made to vendor partially in cash and  remaining by issue of 10% debentures at 10% discount)      
           

Working Notes: Calculation of Number of Debentures issued

No. of debentures issued = Purchase ConsiderationIssue Price of Debentures=6,75,000 (10,00,0003,25,000) 900 (1,000 - 100)= 750 

Page No 7.50:

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit Amount

Rs

 

Assets A/c

Dr.

 

4,00,000

 

 

Goodwill A/c (balancing figure)

Dr.

 

30,000

 

 

To Liabilities A/c

 

 

50,000

 

To Mohan Bros. A/c

 

 

3,80,000

 

(Asset and liabilities purchased from Mohan Bros.)

 

 

 

 

 

 

 

 


For issuing Debentures at 10% discount
Journal
Date
Particulars
L.F.
Debit Amount
Rs
Credit Amount
Rs
 
Mohan Bros.
Dr.
 
3,80,000
 
 
Discount on issue of Debenture A/c
Dr.
 
42,220
 
 
To Debenture A/c
 
 
4,22,200
 
To Bank A/c
 
 
20
 
(Issued 4,222 Debentures of Rs 100 each at 10% discount to Mohan Bros. and fraction of debentures is paid in cash)
 
 
 
 
 
 
 
 

 

Working Note:

Page No 7.50:

Answer:

Books of R Ltd.

Journal

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

 

Assets A/c

Dr.

 

5,00,000

 

 

To Liabilities A/c

 

 

2,00,000

 

To S Ltd.

 

 

2,80,000

 

To Capital Reserve A/c (balancing figure)

 

 

20,000

 

(Asset purchased and liabilities took over from S Ltd.)

 

 

 

 

 

 

 

 

 

S Ltd.

Dr.

 

2,80,000

 

 

To 9% Debentures A/c

 

 

2,80,000

 

(Issued 2,800 9% Debentures of Rs 100 each)

 

 

 

 

 

 

 

 


Working Note:

Page No 7.50:

Answer:

Journal
Date Particulars L.F. Debit
Amount
(Rs)
Credit
Amount
(Rs)
(i) Bank A/c Dr.   5,00,000  
 
To Debenture Application and Allotment A/c
      5,00,000
  (Money on Application and Allotment received)        
           
  Debenture Application and Allotment A/c Dr.   5,00,000  
 
To 10% Debentures A/c
      5,00,000
  (Money transferred to 10% Debentures Account)        
           
(ii) Fixed Assets A/c Dr.   5,50,000  
 
To Vendor’s A/c
      5,50,000
  (Purchased fixed assets from vendor)         
           
  Vendor’s A/c Dr.   5,50,000  
 
To 10% Debentures A/c
      5,00,000
    To Securities Premium A/c       50,000
  (Debentures issued to vendor for purchase of assets)      
           

Page No 7.50:

Answer:

Journal
Date Particulars L.F. Debit
Amount
(Rs)
Credit
Amount
(Rs)
  Entry for all cases        
  Assets A/c Dr.   6,60,000  
  Goodwill A/c (Balancing Figure) Dr.   20,000  
 
To Liabilities A/c
      80,000
 
To Y Ltd.
      6,00,000
  (Purchased assets and liabilities of Y Ltd.)        
           
Case (a) Y Ltd. Dr.   6,00,000  
 
To 12% Debentures A/c (5,400 × 100)
      5,40,000
 
To Bank A/c (10% of 6,00,000)
      60,000
  (Cash paid to Y Ltd. and for the remaining 5,400 12% Debentures issued at par)      
           
Case (b) Y Ltd. Dr.   6,00,000  
 
To 12% Debentures A/c (4,500 × 100)
      4,50,000
 
To Securities Premium A/c (4,500 × 20)
      90,000
 
To Bank A/c (10% of 6,00,000)
      60,000
  (Cash paid to Y Ltd. and for the remaining 5,400 12% Debentures issued at 20% premium)      
           

Page No 7.50:

Answer:

When Debentures Issued as Collateral Security are shown separately
 

Date
Particulars
L.F.
Debit Amount
Rs
Credit Amount
Rs
 
Bank A/c
Dr.
 
4,00,000
 
 
To Loan from Mahavir Bank Ltd.
 
 
4,00,000
 
(Loan taken against issuing 8% Debentures as collateral security)
 
 
 
 
 
 
 
 
 
Debenture Suspense A/c
Dr.
 
4,00,000
 
 
To 8% Debenture A/c
 
 
4,00,000
 
(Debentures issued as collateral security)
 
 
 
 
 
 
 
 

Posting in the Company's Balance Sheet (When Debentures Issued as Collateral Security are shown separately)
 
Balance Sheet
Particulars
Note No.
Amount 
(Rs)
I Equity and Liabilities
 
 
1.Shareholders’ Funds
 
 
2.Non-Current Liabilities
 
 
a. Long-Term Borrowings
1
4,00,000
3.Current Liabilities
 
 
Total
 
4,00,000
 
 
 
II Assets
 
 
1. Non-Current Assets
 
 
2. Current Assets
 
 
a. Cash and Cash Equivalents
2
4,00,000
Total
 
4,00,000
 
 
 

NOTES TO ACCOUNTS
Note No.
Particulars
Amount
(Rs)
 
 
 
1
Long-Term Borrowings
 
 
Secured:
 
 
Loan  From Mahavir Bank (Secured by issue of  Debentures of Rs 4,00,000)
4,00,000
 
8% Debentures (Issued as Collateral Security to Bank against Loan)
 
4,00,000
 
 
 
Less: Debenture Suspense Account
4,00,000
-
 
 
4,00,000
2
Cash and Cash Equivalents
 
 
Cash at Bank
4,00,000
 
 
 

Alternative Method: When debentures Issued as Collateral Security are not shown separately
 
Date
Particulars
L.F.
Debit Amount
Rs
Credit Amount
Rs
 
Bank A/c
Dr.
 
4,00,000
 
 
To Loan From Mahavir Bank Ltd.
 
 
4,00,000
 
(Loan taken from Mahavir Bank secured by issuing Debentures as collateral security)
 
 
 
 
 
 
 
 

(When Debentures Issued as Collateral Security are not shown separately)
 
Balance Sheet
Particulars
Note No.
Amount 
(Rs)
I. Equity and Liabilities
 
 
1. Shareholders’ Funds
 
 
2. Non-Current Liabilities
 
 
a. Long-Term Borrowings
1
4,00,000
3. Current Liabilities
 
 
Total
 
4,00,000
 
 
 
II. Assets
 
 
1. Non-Current Assets
 
 
2. Current Assets
 
 
a. Cash and Cash Equivalents
2
4,00,000
Total
 
4,00,000
 
 
 

NOTES TO ACCOUNTS
 
Note No.
Particulars
Amount
(Rs)
 
 
 
1
Long-Term Borrowings
 
 
Secured:
 
 
Loan From Mahavir Bank (Secured by issue of  8% Debentures of Rs 4,00,000 as Collateral Security)
 
4,00,000
 
 
 
2
Cash and Cash Equivalents
 
 
Cash at Bank
4,00,000
 
 
 

Page No 7.50:

Answer:

As per the Schedule III of the Companies Act, 2013, the Company’s Balance Sheet is as follows.
 

Exe Ltd.

Balance Sheet

Particulars

Note No.

Amount 

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

2. Non-Current Liabilities

 

 

a. Long-Term Borrowings

1

5,00,000

3. Current Liabilities

 

 

Total

 

5,00,000

 

 

 

II. Assets

 

 

1. Non-Current Assets

 

 

2. Current Assets

 

 

a. Cash and Cash Equivalents

2

5,00,000

Total

 

5,00,000

 

 

 


NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Long-Term Borrowings

 

 

Loan (Secured by issue of  9% Debentures of Rs 6,00,000 as Collateral Security)

 

5,00,000

 

 

 

2

Cash and Cash Equivalents

 

 

Cash at Bank

5,00,000

 

 

 

 

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

 

Bank A/c

Dr.

 

5,00,000

 

 

To Loan A/c

 

 

5,00,000

 

(Loan taken against issuing 9% Debentures as collateral Security)

 

 

 

 

 

 

 

 


Alternative Method:

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

 

Bank A/c

Dr.

 

5,00,000

 

 

To Loan A/c

 

 

5,00,000

 

(Loan taken against issuing 9% debentures as collateral Security)

 

 

 

 

 

 

 

 

 

Debenture Suspense A/c

Dr.

 

6,00,000

 

 

To 9% Debentures A/c

 

 

6,00,000

 

(Issued 9% Debentures of Rs 6,00,000 as collateral security)

 

 

 

 

 

 

 

 


Posting in the Company's Balance Sheet
 

Exe Ltd.

Balance Sheet

Particulars

Note No.

Amount 

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

2. Non-Current Liabilities

 

 

a. Long-Term Borrowings

1

5,00,000

3. Current Liabilities

 

 

Total

 

5,00,000

 

 

 

II. Assets

 

 

1. Non-Current Assets

 

 

2. Current Assets

 

 

a. Cash and Cash Equivalents

2

5,00,000

Total

 

5,00,000

 

 

 

 

NOTES TO ACCOUNTS
Note No.
Particulars
Amount
(Rs)
1
Long-Term Borrowings
 
 
Secured:
 
 
Loan (Secured by issue of  9% Debentures of
Rs 6,00,000 as Collateral Security)
 
5,00,000
 
9% Debentures (Issued as Collateral Security to Bank against loan)

6,00,000
 
 
 
Less: Debenture Suspense Account
6,00,000
-
 
 
5,00,000
2
Cash and Cash Equivalents
 
 
Cash at Bank
5,00,000

 

 

 

Page No 7.50:

Answer:

Journal

Date

Particulars

L.F.

Debit 

Amount

Rs

Credit Amount

Rs

(a)

Bank A/c

Dr.

 

95

 

 

To Debenture Application A/c

 

 

95

 

(Debenture application money received)

 

 

 

 

 

 

 

 

 

Debenture Application A/c

Dr.

 

95

 

 

Discount on Issue of Debentures A/c

 

 

5

 

 

To Debenture A/c

 

 

100

 

(Debenture of Rs 100 each issued at Rs 95 with the term repayable at par)

 

 

 

 

 

 

 

 

(b)

Bank A/c

Dr.

 

95

 

 

To Debenture Application A/c

 

 

95

 

(Debenture application money received)

 

 

 

 

 

 

 

 

 

Debenture Application A/c

Dr.

 

95

 

 

Discount on Issue of Debentures A/c

Dr.

 

5

 

 

Loss on Issue of Debentures A/c

Dr.

 

5

 

 

To Debentures A/c

 

 

100

 

To Premium on Redemption A/c

 

 

5

 

(Debenture of Rs 100 each issued of Rs 95 with the term repayable at Rs 105)

 

 

 

 

 

 

 

 

(c)

Bank A/c

Dr.

 

100

 

 

To Debenture Application A/c

 

 

100

 

(Debenture Application received)

 

 

 

 

 

 

 

 

 

Debenture Application A/c

Dr.

 

100

 

 

Loss on Issue of Debentures A/c

Dr.

 

5

 

 

To Debentures A/c

 

 

100

 

To Premium on Redemption A/c

 

 

5

 

(Debenture of Rs 100 each issued at par with the term repayable at Rs 105)

 

 

 

 

 

 

 

 



Page No 7.51:

Answer:

Journal
Date Particulars L.F.