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Pass the Necessary Journal Entries for the Issue of Debentures in the Following Cases: Rs 30,000, 12% Debentures of Rs 100 Each Issued at a Discount of 5% Redeemable at Par. - Accountancy

Pass the necessary journal entries for the issue of debentures in the following cases:

Rs 30,000, 12% debentures of Rs 100 each issued at a discount of 5% redeemable at par.

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Solution

Journal
Date Particulars L.F.

Dr.

Rs

Cr.

Rs

 

Bank A/c                    Dr.

      To Debenture Application A/c

(Being 30,000 debentures issued of Rs 100 at a premium of 5%)

 

28,50,000

 

 

 

28,50,000

 

 

 

Debenture Application A/c         Dr.

Loss on Issue of Debentures A/c         Dr.

     To 12% Debenture A/c

(Being 30,000 debentures issued at a premium of 5% and redeemable at a premium of 5%)

 

28,50,000

1,50,000

 

 

 

 

30,00,000

 

Concept: Issue of Debentures with Terms of Redemption
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