On 1st April, 2015, V.V.L.Ltd issued 1,000, 9% Debentures of ₹ 100 each at a discount of 6%, redeemable at a premium of 10% after three years. Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31st March, 2016, assuming that interest is payable on 30th September and 31st March and the rate of tax deducted at source is 10%. The company closes its books on 31st March every year.
Solution
|
Journal |
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|
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Apr.01 |
Bank A/c (1,000 × 94) |
Dr. |
|
94,000 |
|
|
|
To Debenture Application and Allotment A/c |
|
|
|
94,000 |
|
|
(Received application money on 1,000 Debenture) |
|
|
|
|
|
|
|
|
|
|
|
|
Apr.01 |
Debenture Application and Allotment A/c |
Dr. |
|
94,000 |
|
|
|
Discount on Issue of Debenture A/c (1,000 ×6) |
Dr. |
|
6,000 |
|
|
|
Loss on Issue of Debenture A/c (1,000 × 10) |
Dr. |
|
10,000 |
|
|
|
To 9% Debentures A/c (1,000 × 100) |
|
|
|
1,00,000 |
|
|
To Premium on Redemption of Debentures A/c A/c (1,000 × 10) |
|
|
|
10,000 |
|
|
(Application money transferred to Debentures A/c) |
|
|
|
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