Page 331 - AAAXII

M.316 An Aid to Accountancy—CBSE XII

8.
Dr. SUBSCRIPTION ACCOUNT Cr.
Date Particulars ` Date Particulars `
2018 2018
March 31 To Outstanding Subscription A/c 40,000 March 31 By Advance Subscription A/c 12,000
2019 2019
March 31 To Income and Expenditure A/c 2,00,000 March 31 By Bank A/c 2,05,000
(200 × ` 1,000) March 31 By Outstanding Subscription A/c 53,000
March 31 To Advance Subscription A/c 30,000 (Balancing Figure)
2,70,000 2,70,000

Alternative Method: `
Subscription received during the year 2,05,000
Add: Subscription received in advance (31.3.2018) 12,000
2,17,000
Less: Subscription received in advance (31.3.2019) 30,000
Subscription Outstanding (31.3.2018) 40,000 70,000
1,47,000
Add: Subscription Outstanding (31.3.2019) (Balancing Figure) 53,000
Subscription Due for the Year 2018–19 (200 × ` 1,000) 2,00,000

9. JOURNAL OF YOUNG INDIA LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
Incorporation Expenses A/c ...Dr. 2,00,000
To Promoters’ A/c 2,00,000
(Being the cost of company incorporation to be paid by issue of debentures)
Promoters’ A/c ...Dr. 2,00,000
To 10% Debentures A/c 2,00,000
(Being the issue of 2,000; 10% Debentures of ` 100 each at par to promoters)
Underwriting Commission A/c ...Dr. 1,00,000
To Underwriters’ A/c 1,00,000
(Being the underwriting commission due on shares)
Underwriters’ A/c ...Dr. 1,00,000
To 10% Debentures A/c 1,00,000
(Being the issue of 1,000; 10% Debentures of ` 100 each at par to underwriters)
Or
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Sundry Assets A/c ...Dr. 4,00,000
To Sundry Liabilities A/c 70,000
To Mars Ltd. 3,24,000
To Capital Reserve A/c 6,000
(Being the assets and liabilities of Mars. Ltd. taken over)
Mars Ltd. ...Dr. 3,24,000
Discount on Issue of Debentures A/c ...Dr. 30,000
To Bills Payable A/c 54,000
To 9% Debentures A/c 3,00,000
(Being the payment through bill payable and issue of debentures
at 10% discount)
` 3,24,000 – 54,000` ` 2,70,000
Note: Number of debentures to be issued = = = 3,000.
` 90 ` 90