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Question
Pass necessary journal entries for the issue of debentures in the following cases:
- Issued 50,000, 9% debentures of ₹ 100 each at par redeemable at par.
- Issued 10,000, 8% debentures of ₹ 100 each at 7% premium redeemable at par.
- Issued 750, 8% debentures of ₹ 100 each at 10% discount redeemable at par.
- Issued 1,000, 9% debentures of ₹ 100 each at 5% premium redeemable at 8% premium.
- Issued 500, 9% debentures of ₹ 100 each at 10% discount redeemable at 10% premium.
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Solution
| In the Books of ______ Journal Entries |
||||
| Date | Particular | L.F. | Dr. (₹) | Cr. (₹) |
| (a) (i) | Bank A/c ...Dr. | 50,00,000 | - | |
| To Debenture Application and Allotment A/c | - | 50,00,000 | ||
| (Being debenture money received.) | ||||
| (ii) | Debenture Application and Allotment A/c ...Dr. | 50,00,000 | - | |
| To 9% Debentures A/c | - | 50,00,000 | ||
| (Being debentures issued.) | ||||
| (b) (i) | Bank A/c ...Dr. | 10,70,000 | - | |
| To Debenture Application and Allotment A/c | - | 10,70,000 | ||
| (Being debenture money received.) | ||||
| (ii) | Debenture Application and Allotment A/c ...Dr. | 10,70,000 | - | |
| To 8% Debentures A/c | - | 10,00,000 | ||
| To Securities Premium Reserve A/c | - | 70,000 | ||
| (Being debentures issued.) | ||||
| (c) (i) | Bank A/c ...Dr. | 67,500 | - | |
| To Debenture Application and Allotment A/c | - | 67,500 | ||
| (Being debenture money received.) | ||||
| (ii) | Debenture Application and Allotment A/c ...Dr. | 67,500 | - | |
| Discount on Issue of Debenture A/c ...Dr. | 7,500 | - | ||
| To 8% Debentures A/c | - | 75,000 | ||
| (Being debentures issued.) | ||||
| (d) (i) | Bank A/c ...Dr. | 1,05,000 | - | |
| To Debenture Application and Allotment A/c | - | 1,05,000 | ||
| (Being debenture amount received.) | ||||
| (ii) | Debenture Application and Allotment A/c ...Dr. | 1,05,000 | - | |
| Loss on Issue of Debenture A/c ...Dr. | 8,000 | - | ||
| To 9% Debentures A/c | - | 1,00,000 | ||
| To Securities Premium Reserve A/c | - | 5,000 | ||
| To Premium on Redemption of Debenture A/c | - | 8,000 | ||
| (Being debentures issues.) | ||||
| (e) (i) | Bank A/c ...Dr. | 45,000 | - | |
| To Debenture Application and Allotment A/c | - | 45,000 | ||
| (Being debenture amount received.) | ||||
| (ii) | Debenture Application and Allotment A/c ...Dr. | 45,000 | - | |
| Discount on Issue of Debenture A/c ...Dr. | 5,000 | - | ||
| Loss on Issue of Debentures A/c ...Dr. | 5,000 | - | ||
| To 9% Debentures A/c | - | 50,000 | ||
| To Premium on Redemption of Debenture A/c | - | 5,000 | ||
| (Being debentures issued.) | ||||
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Answer in a sentence only.
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