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प्रश्न
Raja Ltd. issued ₹ 2,00,000, 10% Debentures at a discount of 5%. The terms of issue provide the repayment at the end of 4 years. Kitply Ltd. has a balance of ₹ 5,00,000 in Securities Premium.
Pass the Journal entries for issue of debentures and writing off the discount.
[Hint: Dr. Securities Premium A/c and Cr. Discount on Issue of Debentures A/c by ₹ 10,000
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उत्तर
| Journal Entries in the Books of Raja Ltd. |
||||
|---|---|---|---|---|
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
| 1. | Bank A/c ...Dr. | 1,90,000 | ||
| Discount on Issue of Debentures A/c ...Dr. | 10,000 | |||
| To 10% Debentures A/c | 2,00,000 | |||
| (Being ₹ 2,00,000, 10% Debentures issued at 5% discount) | ||||
| 2. | Securities Premium A/c ...Dr. | 10,000 | ||
| To Discount on Issue of Debentures A/c | 10,000 | |||
| (Being discount on issue of debentures written off against Securities Premium) | ||||
Working Note:
Discount on Issue of Debentures
= ₹ 2,00,000 × 5%
= ₹ 10,000
Balance in Securities Premium = ₹ 5,00,000
Therefore, the full discount of ₹ 10,000 can be written off immediately against Securities Premium.
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संबंधित प्रश्न
What is meant by ‘Issue of debentures for Consideration other than Cash’?
What is meant by an ‘Irredeemable Debenture’?
Long Answer Question
How is ‘Discount on Issue of Debentures’ treated in the books of accounts? How will you deal with the ‘discount in issue of debentures’ when the debentures are to be redeemed in instalments?
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Pass necessary Journal entries for the issue of debentures in the following cases:
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Prepare the Balance Sheet (extract) as at 31st March, 2026.
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Debentures are considered as ______ equity.
Assertion (A): Debentures saves income tax.
Reason (R): Interest on debenture is tax deductible expenditure.
Which of the following statement is true?
Debenture holders are the ______.
A company can issue debentures:
