Question

Deepak Ltd purchased furniture of ₹ 2,20,000 from M/s. Furniture Mart. 50% of the amount was paid to M/s. Furniture Mart by accepting a Bill of Exchanged and for the balance the company issued 9% Debenture of ​₹ 100 each at a premium of 10% in favour of M/s. Furniture Mart.
Pass Journal entries in the books of Deepak Ltd.

Answer 1

Books of Deepak Ltd.
Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Furniture A/c	Dr.		2,20,000
	To Furniture Mart				2,20,000
	(Furniture purchased from Furniture Mart)
	Furniture Mart	Dr.		1,10,000
	To Bills Payable A/c				1,10,000
	(Bill accepted from Furniture Mart against 50% payment)
	Furniture Mart	Dr.		1,10,000
	To 9% Debenture A/c				1,00,000
	To Securities Premium A/c				10,000
	(Issued 1,000 9% Debentures of Rs 100 each at a premium of 10% to Furniture Mart)

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