CBSE 2022 · Region 1 · Set 2 · Q5

Surya Ltd. purchased machinery from Mohan Equipment Ltd. The company paid the vendors by issue of $\displaystyle 9$% debentures and the balance through an acceptance in their favour payable after three months. The accountant of the company while Journalising the above mentioned transactions left some items blank. Fill in the blanks in the given below Journal of Surya Ltd. $\displaystyle 1$ Journal of Surya Ltd. Debit Credit Date Particulars LF Amount Amount Q f $\displaystyle 2021$ Jan. $\displaystyle 1$ Machinery A/c. Dr. To (Purchased Machinery for ? $\displaystyle 12,50,000$ from Mohan Equipment Ltd.) II $\displaystyle 1$ Mohan Equipment Ltd. A/c. Dr. To To Securities Premium Reserve (Issued $\displaystyle 8000$, $\displaystyle 9$% Debentures of ₹ $\displaystyle 100$ each at a premium of $\displaystyle 25$%). H $\displaystyle 1$ Dr. To ( I

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Sujata Ltd. invited applications for issuing $\displaystyle 50,000$, $\displaystyle 9$% debenture of ₹ $\displaystyle 100$ each at a discount of $\displaystyle 10$% redeemable at par after five years. The debentures were fully subscribed and all money was duly received. The company had a balance of ₹ $\displaystyle 3,00,000$ in 'Securities Premium Reserve' which it decided to use for writing off the discount/loss on issue of debentures. It also decided to write off the remaining discount/loss on issue of debentures in the first year. Pass the Journal entries for issue of debentures and for writing off discount/loss on issue of debentures.