Journalise the following:
(i) A debenture issued at Rs 95, repayable at Rs 100;
(ii) A debenture issued at Rs 95, repayable at Rs 105; and
(iii) A debenture issued at Rs 100, repayable at Rs 105;
The face value of debenture in each of the above cases is Rs 100.
Solution
S.No. 
Particulars 
L.F. 
Debit Amount Rs 
Credit Amount Rs 

(i) 
Bank A/c 
Dr. 

95 



Discount on Issue of Debenture A/c 
Dr. 

5 




To Debenture A/c 


100 


(Debenture of Rs 100 issued at Rs 5 discount with the term repayable at Rs 100) 




(ii) 
Bank A/c 
Dr. 

95 



Loss on Issue of Debenture A/c 
Dr. 

10 




To Debenture A/c 


100 



To Premium on Redemption of Debentures 


5 


(Debenture of Rs 100 issued at a discount of Rs 5 and with the term repayable at Rs 105) 




(iii) 
Bank A/c 
Dr. 

100 



Loss on Issue of Debenture A/c 
Dr. 

5 




To Debenture A/c 


100 



To Premium on Redemption of Debenture A/c 


5 


(Debenture of Rs 100 issued with the term repayable at Rs 105) 


