Question

A company issued the following debentures during 2004 Interest was payable half-yearly on 30th June & 31st December Give necessary Journal Entries and show the relevant items in the Balance Sheet as on 31st December 2004 (a) January 1,500 6% Redeemable Debentures of R 5 100 each issued at par and are redeemable at par July 1,500 5% Mortgage Debentures of Rs. 100 each issued at par July 1, 1,000 6% Redeemable Debentures of Rs 100 each, issued at 5% discount and are redeemable at 5% premium Dec 31, 500 5% Debentures of Rs. 100 each issued as collateral security for a loan on Rs 35.000 ​

Answer 1

Answer:

A company issued the following debentures during 2004 Interest was payable half-yearly on 30th June & 31st December Give necessary Journal Entries and show the relevant items in the Balance Sheet as on 31st December 2004 (a) January 1,500 6% Redeemable Debentures of R 5 100 each issued at par and are redeemable at par July 1,500 5% Mortgage Debentures of Rs. 100 each issued at par July 1, 1,000 6% Redeemable Debentures of Rs 100 each, issued at 5% discount and are redeemable at 5% premium Dec 31, 500 5% Debentures of Rs. 100 each issued as collateral security for a loan on Rs 35.000