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Model Test Papers M.159

9. JOURNAL OF MOON LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
(i) Bank A/c ...Dr. 30,00,000
To Debentures Application and Allotment A/c 30,00,000
(Being the receipt of debentures application money for
25,000 debentures)
Debentures Application and Allotment A/c ...Dr. 30,00,000
To 10% Debentures A/c 25,00,000
To Securities Premium Reserve A/c 5,00,000
(Being the issue of 25,000; 10% Debentures of ` 100 each at a
premium of 20%)
(ii) Bank A/c ...Dr. 20,00,000
To Bank Loan A/c 20,00,000
(Being the bank loan taken)
Debentures Suspense A/c ...Dr. 25,00,000
10% Debentures A/c 25,00,000
(Being the issue of 25,000, 10% Debentures of ` 100 each as collateral
security for a bank loan)
(iii) Machinery A/c ...Dr. 28,00,000
To Supplier’s A/c 28,00,000
(Being the purchase of Machinery from supplier)
Supplier’s A/c ...Dr. 28,00,000
To 10% Debentures A/c 25,00,000
To Securities Premium Reserve A/c 3,00,000
(Being the issue of 25,000, 10% Debentures of ` 100 each
at a premium of ` 12 each)
10. (i) Subscription Income to be credited to Income and Expenditure Account is
calculated by preparing Subscription Account as under:

Dr. SUBSCRIPTION ACCOUNT Cr.
Particulars ` Particulars `
To Outstanding Subscription A/c 8,400 By Advance Subscription A/c (2016–17) 5,000
(1st April, 2017) By Bank A/c 89,000
To Income and Expenditure A/c 95,700 By Income and Expenditure A/c 600
(Balancing Figure) (Subscription Written-off)
To Advance Subscription A/c (2018–19) 3,000 By Outstanding Subscription A/c (2017–18)* 12,500
1,07,100 1,07,100

*Outstanding subscription: ` 12,500 includes ` 1,500 for 2016–17.
(ii) AN EXTRACT OF INCOME AND EXPENDITURE ACCOUNT
Dr. for the year ending 31st March, 2018 Cr.
Expenditure ` Income `
To Subscription (Written off) 600 By Subscription A/c 95,700