Question

Pass necessary journal entries in the books of New India Ltd. for the following transactions:

1. Issued 500, 9% debentures of ₹ 100 each at a discount of 6% redeemable at a premium of 5%.
2. Issued ₹ 15,00,000, 9% debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 5%.
3. Issued ₹ 75,00,000, 9% debentures of ₹ 100 each at par redeemable at a premium of 5%.

Answer 1

Nevo India Ltd. Journal Entries
Date	Particulars	L.F.	Amount Dr. (₹)	Amount Cr. (₹)
(i)	Bank A/c    ...Dr.		47,000	-
	To Debenture Application and Allotment A/c		-	47,000
	(Being debenture application money received)
	Debenture Application and Allotment A/c    ...Dr.		47,000	-
	Loss on Issue of Debenture A/c    ...Dr.		5,000	-
	To 9% Debenture A/c		-	50,000
	To Premium on Redemption of Debenture A/c		-	2,000
	(Being debentures issued at discount redemption at premium)
(ii)	Bank A/c    ...Dr.		16,50,000	-
	To Debenture Application and Allotment A/c		-	16,50,000
	(Being debenture application money received)
	Debenture Application and Allotment A/c    ...Dr.		16,50,000	-
	Loss on Issue of Debenture A/c    ...Dr.		75,000	-
	To 9% Debenture A/c		-	15,00,000
	To Security Premium Reserve A/c		-	1,50,000
	To Premium on Redemption of Debenture A/c		-	75,000
	(Being debentures issued at par, redeemable at premium)
(iii)	Bank A/c    ...Dr.		75,00,000	-
	To Debenture Application and Allotment A/c		-	75,00,000
	(Being debenture application money received)
	Debenture Application and Allotment A/c    ...Dr.		75,00,000	-
	Loss on Issue of Debenture A/c    ...Dr.		3,75,000	-
	To 9% Debenture A/c		-	75,00,000
	To Premium on Redemption of Debenture A/c		-	3,75,000
	(Being debentures issued at par, redeemable at premium)