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Question
Pass necessary Journal entries relating to the issue of debentures for the following:
(a) Issued ₹ 4,00,000; 9% Debentures of ₹ 100 each at a premium of 8% redeemable at 10% premium.
(b) Issued ₹ 6,00,000; 9% Debentures of ₹ 100 each at par, repayable at a premium of 10%.
(c) Issued ₹ 10,00,000; 9% Debentures of ₹ 100 each at a premium of 5%, redeemable at par.
Solution
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
(a) |
Bank A/c |
Dr. |
|
4,32,000 |
|
|
|
To Debenture Application and Allotment A/c |
|
|
|
4,32,000 |
|
|
(Application money received on 4,000 9% Debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application and Allotment A/c |
Dr. |
|
4,32,000 |
|
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
40,000 |
|
|
|
To 9% Debentures A/c |
|
|
|
4,00,000 |
|
|
To Securities Premium Reserve A/c |
|
|
|
32,000 |
|
|
To Premium on Redemption of debentures A/c |
|
|
|
40,000 |
|
|
(4,000; 9% Debentures issued at a premium of Rs 8 and redeemable at premium of 10%) |
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
Bank A/c |
Dr. |
|
6,00,000 |
|
|
|
To Debenture Application and Allotment A/c |
|
|
|
6,00,000 |
|
|
(Application money received on 6,000 9% Debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application and Allotment A/c |
Dr. |
|
6,00,000 |
|
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
60,000 |
|
|
|
To 9% Debentures A/c |
|
|
|
6,00,000 |
|
|
To Premium on Redemption of Debentures A/c |
|
|
|
60,000 |
|
|
(6,000; 9% Debentures issued at par and redeemable at premium of 10%) |
|
|
|
|
|
|
|
|
|
|
|
|
(c) |
Bank A/c |
Dr. |
|
10,50,000 |
|
|
|
To Debenture Application and Allotment A/c |
|
|
|
10,50,000 |
|
|
(Application money received on 10,000 9%Debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application and Allotment A/c |
Dr. |
|
10,50,000 |
|
|
|
To 9% Debentures A/c |
|
|
|
10,00,000 |
|
|
To Securities Premium Reserve A/c |
|
|
|
50,000 |
|
|
(1,000; 9% Debentures issued at a premium of Rs 5) |
|
|
|
|
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