R.Ltd. offered 20,00,000, 10% Debenture of Rs 200 each at a discount of 7% redeemable at premium of 8% after 9 years. Record necessary entries in the books of R. Ltd.
Solution
Books of R.Ltd.
Journal
Date 
Particulars 
L.F. 
Debit Amount Rs 
Credit Amount Rs 


Bank A/c 
Dr. 

37,20,00,000 




To 10% Debenture Application & Allotment A/c 


37,20,00,000 


(Debenture Application and Allotment money received for 20,00,000 10% Debentures @ Rs 200 each) 





10% Debenture Application and Allotment A/c 
Dr. 

37,20,00,000 



Loss on Issue of Debenture A/c 
Dr. 

3,20,00,000 



Discount on Issue of Debentures A/c 
Dr. 

2,80,00,000 




To 10% Debenture A/c 


40,00,00,000 



To Premium on Redemption of Debentures A/c 


3,20,00,000 


(Allotment of 20,00,000 debenture @ Rs 200 each at 7% discount with the term of 8% premium on redemption) 
