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Question
Pass the necessary journal entries for the issue of debentures in the following cases:
Rs 60,000, 12% debentures of Rs 100 each issued at a discount of 5% redeemable at Rs 105.
Solution
| Journal | ||||
| Date | Particulars | L.F. |
Dr. Rs |
Cr. Rs |
|
Bank A/c Dr. To Debenture Application A/c (Being 60,000 debentures issued at Rs 100 at a |
57,00,000
|
57,00,000 | ||
|
Debenture Application A/c Dr. Loss on Issue of Debentures A/c Dr. (3,00,000 + 3,00,000) To 12% Debenture A/c To Premium on Redemption A/c (Being 60,000 debentures issued at a discount of 5% and redeemable at of Rs 105) |
57,00,000 6,00,000
|
60,00,000 3,00,000
|
||
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