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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. - Accountancy

Numerical

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.

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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)

 

   
Concept: Interest on Debentures
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APPEARS IN

NCERT Class 12 Accountancy - Company Accounts and Analysis of Financial Statements
Chapter 2 Issue and Redemption of Debentures
Numerical Questions | Q 8 | Page 136
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