Question

Journalise the following:
(a) A debenture issued at ₹95, repayable at ₹ 100.
(b) A debenture issued at ₹95, repayable at ₹ 105.
(c) A debenture issued at ₹95, repayable at ₹ 105.
The face value of debenture is  ₹ 100 in each of the above cases.

Answer 1

Journal

Date	Particulars		L.F.	Debit  Amount Rs	Credit Amount Rs
(a)	Bank A/c	Dr.		95
	To Debenture Application A/c				95
	(Debenture application money received)
	Debenture Application A/c	Dr.		95
	Discount on Issue of Debentures A/c			5
	To Debenture A/c				100
	(Debenture of Rs 100 each issued at Rs 95 with the term repayable at par)
(b)	Bank A/c	Dr.		95
	To Debenture Application A/c				95
	(Debenture application money received)
	Debenture Application A/c	Dr.		95
	Discount on Issue of Debentures A/c	Dr.		5
	Loss on Issue of Debentures A/c	Dr.		5
	To Debentures A/c				100
	To Premium on Redemption A/c				5
	(Debenture of Rs 100 each issued of Rs 95 with the term repayable at Rs 105)
(c)	Bank A/c	Dr.		100
	To Debenture Application A/c				100
	(Debenture Application received)
	Debenture Application A/c	Dr.		100
	Loss on Issue of Debentures A/c	Dr.		5
	To Debentures A/c				100
	To Premium on Redemption A/c				5
	(Debenture of Rs 100 each issued at par with the term repayable at Rs 105)