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Question
Pass necessary journal entries in the given case
Pharma Ltd. redeemed 2,500, 12% debentures of Rs 100 each issued at a discount of 6% by converting them into equity shares of Rs 100 each issued at a premium of 25%.
Solution
| Pharma Ltd. Journal |
||||
| Date | Particulars | L.F |
Dr. Rs |
Cr. Rs |
|
12% Debenture A/c Dr. To Debenture holder A/c To Discount on Issue of Debenture A/c (Being 2,500 12% debenture of Rs 100 each issue at a |
2,50,000
|
2,35,000 15,000
|
||
|
Debenture A/c Dr. To Equity Share Capital A/c To Securities premium A/c (Being 1,880 equity share of Rs 100 each issued at the premium of 25% debenture holders) |
2,35,000
|
1,88,000 47,000
|
||
Working Note:
Number of shares to be issued = `"Amount Payable"/"Issue Price"` = `"2,35,000"/"125" = 1,880` share
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| Rs. | |
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Based on the below information you are required to answer the following question:
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