Question

9. Pass the necessary Journal entries for the issue of debentures in the following.
cases. (a) 15000, 9% debentures of 250 each issued a premium, repayable at 15% premium


(b) *3,00,000 12% debentures of 100 each at a discount of 10%, repayable at 5% primium.​

Answer 1

Answer:

(1) bank account de 3750000

to 12%debenture app ac 3750000

(2) debenture app acc de 3750000

loss on issue to de. ac. 562500

to 9%de.ac. 3750000

to pre.on deb. acc 562500

b). bank account de. 27000000

to deb.app. account 27000000

deb.app.ac. de 27000000

discount on deb . ac 3000000

loss on issue deb.ac. 15000000

to 12%deb. ac 300000000

to primium on deb.ac. 1500000