VKR Ltd. issued 975; 9% Debentures of Rs 500 each on 4-3-2016. Pass necessary journal entries for the issue of debentures under the following situations :
(a) When debentures were issued at a premium of 10% redeemable at a premium of 6%.
(b) When debentures were issued at a par redeemable at 9% premium.
Solution
Journal
| Date | Particulars | L.F. |
Dr. Rs |
Cr. Rs |
|
(a)
(b)
|
Bank A/c (975 x Rs 550) Dr To Debenture Application A/c (Being debenture application money received) Debenture Application A/c Dr Loss on Issue of Debentures A/c (975 x Rs 30) Dr To 9% Debentures A/c To Premium on Redemption of Debentures A/c (975 x Rs30) To Securities Premium A/c (975 x 50) (Being debentures issued at premium redeemable at premium)
Bank A/c (975 x Rs 500) Dr To Debenture Application A/c (Being debenture application money received) Debenture Application A/c Dr Loss on Issue of Debenture A/c (975 x Rs 45) Dr To 9% Debentures A/c To Premium on Redemption of Debenture A/c (975 x Rs45) (Being debenture issued at par. redeemable at a premium) |
5,36,250
5,36,250 29,250
4,87,500
4,87,500 43,875
|
5,36,250
4,87,500 29,750 48,750
4,87,500
4,87,500 43,875
|
