Question

Journalise the following:

(i) A debenture issued at Rs. 95, repayable at Rs. 100;

(ii) A debenture issued at Rs. 95, repayable at Rs. 105; and

(iii) A debenture issued at Rs. 100, repayable at Rs. 105;

The face value of the debenture in each of the above cases is Rs. 100.

Answer 1

Date	Particulars				L.F.	Debit Amount Rs	Credit Amount Rs
(i)	Bank A/c			Dr.		95
	Discount on Issue of Debenture A/c			Dr.		5
		To Debenture A/c					100
	(Debenture of Rs 100 issued at Rs 5 discount with the term repayable at Rs 100)
(ii)	Bank A/c			Dr.		95
	Loss on Issue of Debenture A/c			Dr.		10
		To Debenture A/c					100
		To Premium on Redemption of Debentures					5
	(Debenture of Rs 100 issued at a discount of Rs 5 and with the term repayable at Rs 105)
(iii)	Bank A/c			Dr.		100
	Loss on Issue of Debenture A/c			Dr.		5
		To Debenture A/c					100
		To Premium on Redemption of Debenture A/c					5
	(Debenture of Rs 100 issued with the term repayable at Rs 105)