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M.474 An Aid to Accountancy—CBSE XII

6. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Realisation A/c ...Dr. 5,500
To Dev’s Capital A/c 5,500
(Being the remuneration to Dev for dissolution work done, i.e., 2%
of (` 3,75,000* – ` 1,00,000))

*` 3,82,500 – ` 7,500 (Cash at Bank).
Note: Entry for realisation expenses will not be passed assuming that Dev has paid the same out of his pocket.
7. In the Books of Strong Ltd.
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2017
April 1 Bank A/c ...Dr. 4,50,000
To Debentures Application and Allotment A/c 4,50,000
(Being the application money received for 5,000 debentures)
April 1 Debentures Application and Allotment A/c ...Dr. 4,50,000
Loss on Issue of Debentures A/c* ...Dr. 75,000
To 10% Debentures A/c (5,000 × ` 100) 5,00,000
To Premium on Redemption of Debentures A/c 25,000
(Being 5,000, 10% Debentures of ` 100 each issued at discount
of 10% redeemable at a premium of 5%)
2018
March 31 Securities Premium Reserve A/c ...Dr. 75,000
To Loss on Issue of Debentures A/c 75,000
(Being the loss on issue of debentures written-off)
* Discount on Issue of Debentures of ` 50,000 (i.e., ` 5,00,000 × 10/100) is also a loss on issue of debentures. So it is combined
into one account under “Loss on Issue of Debentures Account”.
Dr. LOSS ON ISSUE OF DEBENTURES ACCOUNT Cr.
Date Particulars ` Date Particulars `
2017 2018
April 1 To 10% Debentures A/c 50,000 March 31 By Securities Premium
April 1 To Premium on Redemption Reserve A/c 75,000
of Debentures A/c 25,000
75,000 75,000

8. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2018
March 31 Rich’s Capital A/c ...Dr. 12,00,000
Poor’s Capital A/c ...Dr. 8,00,000
Wealthy’s Capital A/c ...Dr. 5,00,000
To Profit and Loss A/c 25,00,000
(Being the loss distributed among partners in the ratio of 12 : 8 : 5)