Question

Pass journal entries in the following cases:
(a) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 5% redeemable at par.
(b) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 10% redeemable at par.
(c) A Co.Ltd. issued ₹40,000; 12% Debentures at par redeemable at 10% premium.
(d) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 5%  and redeemable at 5% premium.
(e) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 10% redeemable at 110%.

Answer 1

Journal

Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Bank A/c	Dr.		42,000
	To 12% Debenture Application A/c				42,000
	(Debenture application money received)
	12% Debenture Application A/c	Dr.		42,000
	To 12% Debentures A/c				40,000
	To Securities Premium A/c				2,000
	(Debenture application money transferred to 12% Debentures account and securities premium account)

Journal

Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(b)	Bank A/c	Dr.		36,000
	To 12% Debenture Application A/c				36,000
	(Debenture application money received)
	12% Debenture Application A/c	Dr.		36,000
	Discount on Issue of Debentures A/c	Dr.		4,000
	To 12% Debentures A/c				40,000
	(Debentures of Rs 40,000 issued at 10% discount)

Journal

Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(c)	Bank A/c	Dr.		40,000
	To 12% Debenture Application A/c				40,000
	(Debenture application money received)
	12% Debenture Application A/c	Dr.		40,000
	Loss on Issue of Debentures A/c	Dr.		4,000
	To 12% Debentures A/c				40,000
	To Premium on Redemption A/c				4,000
	(Debentures of Rs 40,000 issued at par with the term repayable at 10% premium)

Journal

Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(d)	Bank A/c	Dr.		38,000
	To 12% Debenture Application A/c				38,000
	(Debenture application money received)
	Debenture Application A/c	Dr.		38,000
	Discount on Issue of Debenture A/c	Dr.		2,000
	Loss on Issue of Debenture A/c	Dr.		2,000
	To 12% Debentures A/c				40,000
	To Premium on Redemption A/c				2,000
	(Debentures of Rs 40,000 issued at 5% discount with the term repayable at 5% premium)

Journal

Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(e)	Bank A/c	Dr.		44,000
	To 12% Debenture Application A/c				44,000
	(Debenture application money received)
	12% Debenture Application A/c	Dr.		44,000
	Loss on Issue of Debentures A/c	Dr.		4,000
	To 12% Debentures A/c				40,000
	To Securities Premium A/c				4,000
	To Premium on Redemption A/c				4,000
	(Debenture of Rs 40,000 issued at 10% premium with the term payable at 10% premium)