wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
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.

Open in App
Solution

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)

Working Note:


flag
Suggest Corrections
thumbs-up
3
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Let’s Solve the Puzzle
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon