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Question
R.Ltd. offered 20,00,000, 10% Debenture of Rs 200 each at a discount of 7% redeemable at premium of 8% after 9 years. Record necessary entries in the books of R. Ltd.
Solution
Books of R.Ltd.
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|||
|
|
Bank A/c |
Dr. |
|
37,20,00,000 |
|
||
|
|
|
To 10% Debenture Application & Allotment A/c |
|
|
37,20,00,000 |
||
|
|
(Debenture Application and Allotment money received for 20,00,000 10% Debentures @ Rs 200 each) |
|
|
|
|||
|
|
10% Debenture Application and Allotment A/c |
Dr. |
|
37,20,00,000 |
|
||
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
3,20,00,000 |
|
||
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
2,80,00,000 |
|
||
|
|
|
To 10% Debenture A/c |
|
|
40,00,00,000 |
||
|
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To Premium on Redemption of Debentures A/c |
|
|
3,20,00,000 |
||
|
|
(Allotment of 20,00,000 debenture @ Rs 200 each at 7% discount with the term of 8% premium on redemption) |
|
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