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Question
Journalise the following transaction at the time of issue of 12% Debentures:
Nandan Ltd. issued ₹90,000, 12% Debentures of ₹ 100 each at a discount of 5% redeemable at 110%.
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Solution
Journal
|
Date |
Particulars |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
|
|
|
Bank A/c |
Dr. |
85,500 |
|
|
| To Debenture Application and Allotment A/c |
|
|
85,500 |
||
| (Money received on the issue of debentures) |
|
|
|
||
|
|
|
|
|||
| Debenture Application and Allotment A/c |
Dr. |
85,500 |
|
||
| Loss on Issue of Debentures A/c |
Dr. |
13,500 |
|
||
| To 12% Debentures A/c |
|
|
90,000 |
||
| To Premium on Redemption of Debentures A/c |
|
|
9,000 |
||
| (Debenture application and allotment money transferred to Debentures A/c) |
|
|
|
||
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Short Answer Question
What is discount on issue of debentures?
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
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(i) ₹ 40 , including premium of ₹ 10 on applications;
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