# TS Grewal Solutions Class 12 Accountancy Chapter 9- Issue of Debentures

## TS Grewal Solutions for Class 12 Accountancy Vol 2 Chapter 9

TS Grewal Solutions for Class 12 Accountancy Chapter 9- Issue of Debentures is an elementary concept to be learned by the students. Click here to learn more about TS Grewal Accountancy solutions for class 12 in a simple and a step by step method, which is beneficial for the students to score well in their upcoming board exams.

Class 12 TS Grewal Solutions Accountancy Vol 2 Chapter 9:-Download PDF Here

 Board CBSE Class Class 12 Subject Accountancy Chapter Chapter 9 Chapter Name Issue of Debentures Number of questions solved 07 Category TS Grewal

Also Check: Important Questions for Issue of Debentures

### TS Grewal Solutions for Class 12 Accountancy Chapter 9 – Issue of Debentures

Question 1

X company issued 4,000; 10% debentures of ₹. 100/- each, payable ₹. 20/- on the application and balance amount on the allotment. The debentures are redeemable after 5 years. Applications were received for the issued debentures and allotment was made to all the applicants. The amount was received on due dates.

Pass the necessary journal entries.

Solution:

JOURNAL

DateParticularsL.F.Dr (₹)

#### Cr (₹)

Bank A/c                                                     Dr.80,000
To Debentures application A/c80,000
(Being the application money received on 4,000; 10% debentures @ ₹. 20/ debenture)
Debenture application A/c                                    Dr.80,000
To 10% debentures A/c80,000
(Being the allotment of 4,000; 10% debentures of ₹. 100 each)
Debenture allotment A/c                                     Dr.3,20,000
To 10% debentures A/c3,20,000
(Being the amount due on 4,000; 10% debentures on allotment @ ₹.80/- debenture)
Bank A/c                                                               Dr.3,20,000
Debenture allotment A/c3,20,000
(Being the amount received against allotment)

Question 2

Axe Ltd. issued 20,000; 9% debentures of ₹. 100/- each at a discount of 4% on 1st April 2018, payable ₹. 30/- on the application and the balance on the allotment. The debentures are redeemable after 5 years. Pass necessary journal entries.

Solution:

JOURNAL

DateParticularsL.F.Dr (₹)

#### Cr (₹)

2018 April 1Bank A/c                                                                Dr.6,00,000
To Debentures application A/c6,00,000
(Being the application money on 20,000; 9% debentures @ ₹. 30/- each received)
Debentures application A/c                                   Dr.6,00,000
To 9% debentures A/c6,00,000
(Being the debentures application money transferred to 9% debenture A/c)
Debenture allotment A/c                                       Dr.13,20,000
Discount on issue of debentures A/c                     Dr.80,000
To 9% debentures A/c14,00,000
(Being the allotment money due on 20,000; 9% debentures)
Bank A/c                                                                Dr.13,20,000
To Debenture allotment A/c13,20,000
(Being the amount received on allotment)

Question 3

Titan Watches Ltd. issued 7,500, 8% debentures of ₹. 100/- each at par for a subscription payable along with the applications. The subscription was received for 7,000 debentures. The debentures were duly allotted. Pass the journal entries.

Solution:

In the books of Titan Watches Ltd.

JOURNAL

DateParticularsL.F.Dr (₹)

#### Cr (₹)

Bank A/c                                                                Dr.7,00,000
To debentures application and allotment A/c7,00,000
(Being the applications received for 7,000; 8% debentures @ ₹. 100/- debenture)
Debentures application and allotment A/c            Dr.7,00,000
To 8% debentures A/c7,00,000

#### (Being 7,000; 8% debentures of ₹. 100/- each alloted)

Question 4

Hibiscus Ltd. purchased a piece of land from JNR Ltd. and paid the consideration as follows:

• Issued a cheque for ₹. 10,00,000/-
• Issued a bill exchange for 3 months for ₹. 5,00,000/-
• Issued 5,000; 9% Debentures of ₹. 100/- each at par redeemable at 10% premium after 5 years.

Pass the journal entry.

Solution:

 Date Particulars L.F. Dr (₹) Cr (₹) Land A/c Dr. 20,00,000 Loss on the issue of debentures A/c Dr. 50,000 To Bank A/c 10,00,000 To Bills Payable A/c 5,00,000 To 9% Debentures A/c 5,00,000 To premium on redemption of debentures A/c 50,000 (Being the land purchased and consideration paid)

Question 5

V Ltd. issued 5,000; 9% debentures of ₹. 100/- each at par and also raised a loan of ₹. 80,000/- from the bank, collaterally secured by ₹. 1,00,000/-; 9% debentures. How will be the debentures shown in the balance sheet of the company assuming that the company has passed journal entry for the issue of debentures as collateral security in the books?

Solution:

An Extract of Balance Sheet of V Ltd. as at

ParticularsNote No.

#### ₹

• EQUITY AND LIABILITIES
Non-Current Liabilities1
Long-term Borrowings5,80,000

Note to Accounts

 Long-term Borrowings ₹5,00,000 5,000; 9% debentures of ₹.100/- each 80,000 Loan from bank 1,000; 9% debentures of ₹. 100/- each issued as Collateral Security 1,00,000 Less: Debentures Suspense A/c 1,00,000 5,80,000

Question 6

Debentures are shown in the Balance Sheet of a firm below the head of,

• Non-current liabilities
• Current liabilities
• Share capital
• None of these

Question 7

Debentureholders are,

• Owners of the company
• Lenders of the company
• Vendors of the company
• Customers of the company