Question

22 Excel Ltd. issued 4,00,000; 9% Debentures of 50 each, payable on application. Pass Joumal entries, at
the time of issue of debentures in the following situations:
(i) Issued at par, redeemable at 10% premium.
(ii) Issued at 5% premium, redeemable at 10% premium.
​

Answer 1

Answer:

(i)Bank A/C Dr. 20000000

To Debentures Application&Allotment A/C 20000000

Debentures Application&Allotment A/C Dr. 20000000

Loss on issue of Debentures A/C Dr. 2000000

To 9% Debentures A/C 20000000

To premium on redemption of Debentures A/C 2000000

(ii)Bank A/C Dr. 21000000

To Debentures Application&Allotment A/C 21000000

Debentures Application&Allotment A/C Dr. 21000000

Loss on issue of Debentures A/C Dr. 2000000

To 9% Debentures A/C 20000000

To premium on redemption of Debentures A/C 2000000

To Securities Premium A/C 1000000

(please mark as brainliest)