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A limited issued nominal value rs 100000 ,10% debentures as follows 1) to sundry persons for cash at 90 per cent 2) to a creditor for rs 20000 of fixed assets taken over from him in satisfaction of his claim 3)to the bankers as collateral security for a loan of rs 10000 Pass the necessary journal entries and prepare a balance sheet in the books of a ltd.?
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A limited issued nominal value rs 100000 ,10% debentures as follows 1)...
Journal Entries
1) To record the issue of debentures to sundry persons for cash at 90%:
Bank Account Dr. 90,000
Discount on Issue of Debentures Dr. 10,000
Debenture Account Cr. 100,000
2) To record the issue of debentures to a creditor for Rs. 20,000 of fixed assets taken over from him in satisfaction of his claim:
Creditor Account Dr. 20,000
Fixed Asset Account Dr. 20,000
Debenture Account Cr. 40,000
3) To record the issue of debentures to the bankers as collateral security for a loan of Rs. 10,000:
Bankers Account Dr. 10,000
Debenture Account Cr. 10,000
Balance Sheet
Liabilities Amount (Rs.) Assets Amount (Rs.)
Share Capital 50,000 Fixed Assets 20,000
Debentures 1,30,000 Current Assets:
Bank Overdraft 15,000 Stock 30,000
Sundry Creditors 25,000 Debtors 25,000
Bills Payable 10,000 Cash and Bank Balance 15,000
Provisions 5,000 Prepaid Expenses 5,000
Total 2,50,000 Total 2,50,000
Explanation
The given question is about the issue of limited issued nominal value Rs. 100,000, 10% debentures. The company issued debentures to sundry persons for cash at 90%, to a creditor for Rs. 20,000 of fixed assets taken over from him in satisfaction of his claim, and to the bankers as collateral security for a loan of Rs. 10,000.
The journal entry for the issue of debentures to sundry persons is a debit to the bank account and discount on the issue of debentures account and a credit to the debenture account. The journal entry for the issue of debentures to a creditor is a debit to the creditor account and fixed asset account and a credit to the debenture account. The journal entry for the issue of debentures to the bankers as collateral security is a debit to the bankers account and a credit to the debenture account.
The balance sheet shows the liabilities and assets of the company. The liabilities include share capital, debentures, bank overdraft, sundry creditors, bills payable, and provisions. The assets include fixed assets, current assets such as stock, debtors, cash and bank balance, and prepaid expenses. The balance sheet shows the financial position of the company at a particular point in time.
1) To record the issue of debentures to sundry persons for cash at 90%:
Bank Account Dr. 90,000
Discount on Issue of Debentures Dr. 10,000
Debenture Account Cr. 100,000
2) To record the issue of debentures to a creditor for Rs. 20,000 of fixed assets taken over from him in satisfaction of his claim:
Creditor Account Dr. 20,000
Fixed Asset Account Dr. 20,000
Debenture Account Cr. 40,000
3) To record the issue of debentures to the bankers as collateral security for a loan of Rs. 10,000:
Bankers Account Dr. 10,000
Debenture Account Cr. 10,000
Balance Sheet
Liabilities Amount (Rs.) Assets Amount (Rs.)
Share Capital 50,000 Fixed Assets 20,000
Debentures 1,30,000 Current Assets:
Bank Overdraft 15,000 Stock 30,000
Sundry Creditors 25,000 Debtors 25,000
Bills Payable 10,000 Cash and Bank Balance 15,000
Provisions 5,000 Prepaid Expenses 5,000
Total 2,50,000 Total 2,50,000
Explanation
The given question is about the issue of limited issued nominal value Rs. 100,000, 10% debentures. The company issued debentures to sundry persons for cash at 90%, to a creditor for Rs. 20,000 of fixed assets taken over from him in satisfaction of his claim, and to the bankers as collateral security for a loan of Rs. 10,000.
The journal entry for the issue of debentures to sundry persons is a debit to the bank account and discount on the issue of debentures account and a credit to the debenture account. The journal entry for the issue of debentures to a creditor is a debit to the creditor account and fixed asset account and a credit to the debenture account. The journal entry for the issue of debentures to the bankers as collateral security is a debit to the bankers account and a credit to the debenture account.
The balance sheet shows the liabilities and assets of the company. The liabilities include share capital, debentures, bank overdraft, sundry creditors, bills payable, and provisions. The assets include fixed assets, current assets such as stock, debtors, cash and bank balance, and prepaid expenses. The balance sheet shows the financial position of the company at a particular point in time.
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A limited issued nominal value rs 100000 ,10% debentures as follows 1)...
Journal entries
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A limited issued nominal value rs 100000 ,10% debentures as follows 1) to sundry persons for cash at 90 per cent 2) to a creditor for rs 20000 of fixed assets taken over from him in satisfaction of his claim 3)to the bankers as collateral security for a loan of rs 10000 Pass the necessary journal entries and prepare a balance sheet in the books of a ltd.?
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A limited issued nominal value rs 100000 ,10% debentures as follows 1) to sundry persons for cash at 90 per cent 2) to a creditor for rs 20000 of fixed assets taken over from him in satisfaction of his claim 3)to the bankers as collateral security for a loan of rs 10000 Pass the necessary journal entries and prepare a balance sheet in the books of a ltd.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A limited issued nominal value rs 100000 ,10% debentures as follows 1) to sundry persons for cash at 90 per cent 2) to a creditor for rs 20000 of fixed assets taken over from him in satisfaction of his claim 3)to the bankers as collateral security for a loan of rs 10000 Pass the necessary journal entries and prepare a balance sheet in the books of a ltd.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A limited issued nominal value rs 100000 ,10% debentures as follows 1) to sundry persons for cash at 90 per cent 2) to a creditor for rs 20000 of fixed assets taken over from him in satisfaction of his claim 3)to the bankers as collateral security for a loan of rs 10000 Pass the necessary journal entries and prepare a balance sheet in the books of a ltd.?.
A limited issued nominal value rs 100000 ,10% debentures as follows 1) to sundry persons for cash at 90 per cent 2) to a creditor for rs 20000 of fixed assets taken over from him in satisfaction of his claim 3)to the bankers as collateral security for a loan of rs 10000 Pass the necessary journal entries and prepare a balance sheet in the books of a ltd.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A limited issued nominal value rs 100000 ,10% debentures as follows 1) to sundry persons for cash at 90 per cent 2) to a creditor for rs 20000 of fixed assets taken over from him in satisfaction of his claim 3)to the bankers as collateral security for a loan of rs 10000 Pass the necessary journal entries and prepare a balance sheet in the books of a ltd.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A limited issued nominal value rs 100000 ,10% debentures as follows 1) to sundry persons for cash at 90 per cent 2) to a creditor for rs 20000 of fixed assets taken over from him in satisfaction of his claim 3)to the bankers as collateral security for a loan of rs 10000 Pass the necessary journal entries and prepare a balance sheet in the books of a ltd.?.
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A limited issued nominal value rs 100000 ,10% debentures as follows 1) to sundry persons for cash at 90 per cent 2) to a creditor for rs 20000 of fixed assets taken over from him in satisfaction of his claim 3)to the bankers as collateral security for a loan of rs 10000 Pass the necessary journal entries and prepare a balance sheet in the books of a ltd.?, a detailed solution for A limited issued nominal value rs 100000 ,10% debentures as follows 1) to sundry persons for cash at 90 per cent 2) to a creditor for rs 20000 of fixed assets taken over from him in satisfaction of his claim 3)to the bankers as collateral security for a loan of rs 10000 Pass the necessary journal entries and prepare a balance sheet in the books of a ltd.? has been provided alongside types of A limited issued nominal value rs 100000 ,10% debentures as follows 1) to sundry persons for cash at 90 per cent 2) to a creditor for rs 20000 of fixed assets taken over from him in satisfaction of his claim 3)to the bankers as collateral security for a loan of rs 10000 Pass the necessary journal entries and prepare a balance sheet in the books of a ltd.? theory, EduRev gives you an
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