TS Grewal Solutions Class 12 Accountancy Volume 2 Chapter 9

Commerce

TS Grewal Solutions Class 12 Accountancy Volume 2 Chapter 9

Class 12 Accountancy TS Grewal Solutions Volume 2 Chapter 9 - Issue of Debentures

The Class 12 Accountancy TS Grewal Solutions Chapter 9 is updated for students to understand better the concepts and procure good scores. The TS Grewal Solution is a credible reference source that provides elementary knowledge for commerce students. The Solutions offers a comprehensive view of solved exercises that enhances the preparation or revision process. Students can download the chapter-wise solutions curated by experts from here for free and prepare accordingly.

TS Grewal Solutions Class 12 Accountancy Volume 2 Chapter 9 - Issue of Debentures

The book-keeping process is followed in all the accounting formats, tables, and various diagrams. This will enable the student to make easy preparation according to the board pattern from the starting.
The chapters are planned systematically along with the learning objectives at the starting which will let the students prepare their schedule accordingly. Generally, the syllabus for class 12 is very big and it is quite difficult for the students to grasp the proper time to complete it. Hence these learning objectives will help the students to keep a check on their existing plans.
The examples are large in number as they cover each concept of the chapter.
The solutions also include previous year’s board questions and theoretical questions.
Appendix (1) and Appendix (2) for a quick reference are available.

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Class 12 is a very crucial year for every student as, based on your 12th-grade marks, you will be choosing your career options. TS Grewal is the best book to follow for accounting purposes. The book consists of sums which are designed by high-end teachers who are experienced in this field for many years. Vedantu consists of the best solutions to answers to the questions in Class 12 TS Grewal Volume 2 Chapter 9 – Issue of Debentures. There are good chances of questions dropping in from these books.

The solutions are very helpful for the students in their preparations for their exams as well as home studies. The solutions provided by Vedantu are very simplified and easy to understand. The experts at Vedantu have planned Class 12 Accountancy TS Grewal Solutions Volume 2 Chapter 9 - Issue of Debentures solutions keeping in mind the knowledge and standard of the student’s perception. You can download the solutions without any doubt from the Vedantu website. The TS Grewal Solutions Volume 2 Issue of Debentures is bound to help you in every way.

Important Topics Links

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FAQs on TS Grewal Solutions Class 12 Accountancy Volume 2 Chapter 9

1. What do you mean by the Issue of Debentures?

Debentures are issued by the common seal of the company as written instruments of debt. It is a certificate under which there is an acknowledgment by the seal that the debt is taken by the company. It is issued by the company under Section 2(30) of the Companies Act, 2013. It is issued to the public as of the contract of repayment of money borrowed from them after a fixed period. The issue of Debentures and the issue of shares the same procedure. It includes debenture stocks, bonds, and any other document indicating debt, irrespective of constituting a charge on the assets of the company or not.

2. What is Debenture Redemption Reserve?

Debenture Redemption Reserve (DRR) is a provision divulging that any Indian company that issues debentures must maintain a Debenture Redemption Reserve to protect the people who give the debt to the company or the investors from the possibility or risk of loss or faulting. The companies are liable to maintain or create DRR equivalent to 50% of the amount of debenture issue before the debenture redemption starts. The accounting standards still follow the norm of creating a 25% Debenture Redemption Reserve on the face value of the Debentures issues.

3. What do you mean by issues of Debentures: a) at par, b) at a premium, c) at discount.

The issue of debentures at par - Debentures are issued at par when the issues of Debentures price and a face value price are the same.

The Issue of Debentures at Premium - Debentures are said to be issued at a premium when the issue price of the Debentures is more than the face value of the debentures
The Issue of Debentures at Discount - Debentures are said to be issued at a discount when the issue price of the debentures is less than the face value of the issued debentures.

4. What do you mean by the Issue of Debentures as collateral security?

When a company takes out a loan, it may offer basic security for its assets. However, the lending institution may emphasize other assets as collateral or as collateral. In such a case, the company may issue loans to the lenders as secondary or collateral, such a loan issue is known as ‘collateral’. If the company fails to repay the loan and interest and the principal collateral is insufficient to repay the loan, in that case only the lender is free to use the debt as collateral. Lenders may bring such loans for use or sell them on the open market.

5. What are two ways to get rid of debts as a mortgage?

Method One (Without passing the journal) - In this method, no journal entries are passed in the books for the issuance of debentures as collateral.

However, the fact of debentures that are issued is mentioned in the information below the debentures, which is expressed as a long-term loan under non-current liabilities or as short-term liabilities under current liabilities.

Option Two (By Journal) - Debentures issued as collateral can be recorded in the journal.

The following journal entries will be approved for debt issuance as security for security:

Debenture Suspense A / c Dr {This appears on the assets side}
To X% Debentures A / c {This comes from the liabilities side}

If the loan is repaid the above entries are canceled by the reverse transfer. In the balance sheet, the loans issued as collateral should be shown separately from other debentures.