11(a) What journal entries will be made in the following cases?
(a). A company issued Rs.40,000/- 6% debentures at par redeemable at par.
(b). A company issued Rs.40, 000/- 6% debentures at discount of 10%
redeemable at par.
(c). A Company issued Rs.40, 000/- 6% debentures at premium of 5%
redeemable at par.
(d). A Company issued Rs.40, 000/- 6% debentures at par redeemable at
10% Premium.
(e). A company issued Rs.40,000/- 6% debentures at discount of 5%
redeemable at 5% premium.
Answers
Answer:
a) at the time of issue of debenture
Bank account. Dr. 40000 To debenture application & allotment 40000
Debenture application & allotment Dr 40000
To 6%debenture account. 40000
at time of redemption of debenture
6%debenture account. Dr 40000
To debentureholder a/c. 40000
Debenture holder a/c. Dr 40000
To bank account. 40000
b) at the time of issue
Bank account. Dr. 36000. To debenture application & allotment. 36000
Debenture application & allotment Dr 36000
discount on issue of debenture. Dr. 4000
To 6% debenture account. 40000
at the time of redemption
6%debenture account. Dr 40000
To debentureholder a/c. 40000
Debenture holder a/c. Dr 40000
To bank account. 40000
c) at the time of issue
Bank account. Dr 42000
To debenture application & allotment 42000
Debenture application allotment Dr 42000
To 6%debenture account. 40000
To security premium reserve. 2000
at the time of redemption
6%debenture account. Dr 40000
To debentureholder a/c. 40000
Debenture holder a/c. Dr 40000
To bank account. 40000
d) at the time of issue
Bank account. Dr. 40000 To debenture application & allotment 40000
Debenture application & allotment Dr 40000
loss on issue of debenture. Dr 4000
To 6%debenture account. 40000
To premium on redemption. 4000
at the time of redemption
6%debenture account Dr 40000
Premium on redemption Dr 4000
To debentureholder. 44000
Debentureholder. Dr. 44000
To bank account. 44000
e) at the time of issue
Bank account. Dr. 38000
To debenture application allotment Dr 38000
Debenture application allotment Dr 38000
loss on issue of debenture. Dr. 4000
To 6% debenture. 40000
To premium on redemption. 2000
at the time of redemption
6% Debenture account. Dr 40000
premium on redemption Dr. 2000
To debentureholder. 42000
Debentureholder. Dr. 42000
To bank account. 42000