Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
481 views
in Accounts by (31.4k points)
closed by

Archana Ltd. issued 2,000 10% Debentures of Rs 100 each at a premium of Rs 10 per Debenture payable as follows:

On Application : Rs. 50

On Allotment : Rs. 60 (Premium included Rs. 10)

The Debentures were fully subscribed and all money was duly received.

Pass Journal entries and show how the amounts appear in Balance Sheet.

1 Answer

+1 vote
by (30.9k points)
selected by
 
Best answer

Books of Archana Ltd.

Journal Entry

Balance Sheet of Archana Ltd.

Working Note:

Face value of a Debenture = Rs. 100

Securities Premium = Rs.10

∴ Issue Price = Rs. 110.

Note : As per the textbook solution 2,500, 10% Debentures were issued but according to the question 2,000, 10% Debentures were issued. Therefore, our solution is as per the information provided in the question.

Related questions

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...