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A. Ltd. Issued 90,00,000, 9% Debenture of Rs 50 Each at a Discount of 8%, Redeemable at Par Any Time After 9 Years. Record Necessary Entries in the Books of A. Ltd. - Accountancy

Numerical

A. Ltd. issued 90,00,000, 9% Debenture of Rs 50 each at a discount of 8%, redeemable at par any time after 9 years. Record necessary entries in the books of A. Ltd.

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Solution

Books of A. Ltd.

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

 

Bank A/c

Dr.

 

41,40,00,000

 

 

Discount on Issue of Debenture A/c

Dr.

 

3,60,00,000

 

 

To 9% Debenture A/c

 

 

 

45,00,00,000

 

(Money received for 90,00,000 9% Debentures

@ Rs 50 each at discount of 8%)

 

 

 

Alternative Method:

Bank A/c

Dr.

 

41,40,00,000

 

 

 

To 9% Debentures Application A/c

 

 

41,40,00,000

 

(Debenture Application money received  @ Rs 46 each

on 90,00,000  9% Debentures)

 

 

 

 

9% Debentures Application A/c

Dr.

 

41,40,00,000

 

 

Discount on issue of Debentures A/c

Dr.

 

3,60,00,000

 

 

To 9% Debenture A/c

 

 

4,50,00,000

 

(9% Debentures application money transferred to

9% Debenture Account)

     
Concept: Interest on Debentures
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APPEARS IN

NCERT Class 12 Accountancy - Company Accounts and Analysis of Financial Statements
Chapter 2 Issue and Redemption of Debentures
Numerical Questions | Q 4 | Page 136
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