Question

Different Terms of Issue and Redemption of Debentures
26. Give Journal entries for the issue of Debentures in the following conditions :
() Issued 2,000-10% debentures of ? 100 each at a premium 5% redeemable at par.
(iD Issued 5,000-12% debentures of * 100 each at a premium 5%, redeemable at a premium 10%.
Ans. (i) Securities Premium Reserve A/c 10,000, (ii) Credit Securities Premium Reserve A/c
25,000, Premium on Redemption of Debentures A/c 50,000, Loss on Issue of Debentures
A/c 50,000.)​

Answer 1

Answer:

(1) bank a/c. dr. 22000

to. 10%debenture. 20000

to. securities premium. 2000

(2) bank a/c. dr. 52000

loss on issue of debenture. 50000

to. bank. 50000

to. sec pre. 2000

to. deb on redumption. 50000