Advertisement Remove all ads

Alka Ltd . Issued 5,000, 10% Debentures of ​₹ 1,000 Each at a Discount of 10% Redeemable at a Premium of 5% After 5 Years . - Accountancy

Journal Entry

Alka Ltd . issued 5,000, 10% Debentures of ​₹  1,000 each at a discount of 10% redeemable at a premium of 5% after 5 years . According to the terms of issue ​₹  500 was payable  on application and the balance amount on allotment of debentures. Record necessary entries regarding issue of 10% Debentures.

Advertisement Remove all ads

Solution

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

Bank A/c (5,000×500)

Dr.

 

25,00,000

 

 

  To Debenture Application A/c

 

 

 

25,00,000

 

(Received application money on 5,000 debentures)

 

 

 

 

 

 

 

 

 

 

 

Debenture Application A/c

Dr.

 

25,00,000

 

 

  To 10% Debentures A/c

 

 

 

25,00,000

 

(Transfer of application money to Debentures A/c)

 

 

 

 

 

 

 

 

 

 

 

Debenture Allotment A/c (5,000×400)

Dr.

 

20,00,000

 

  Discount on issue of Debentures A/c (5,000×100)     5,00,000  

 

Loss on issue of Debentures A/c (5,000×50)

Dr.

 

2,50,000

 

 

  To 10% Debentures A/c (5,000×500)

 

 

 

25,00,000

 

  To Premium on Redemption of Debentures A/c (5,000×50)

 

 

 

2,50,000

 

(Allotment due on 5,000 Debentures at a discount of Rs 100 per debentures and redeemable at premium of 5%)

 

 

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

   20,00,000

 

 

  To Debenture Allotment A/c

 

 

 

20,00,000

 

(Allotment money received)

 

 

 

 

  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 2
Chapter 2 Issue of Debentures
Exercise | Q 11 | Page 52
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×