Footfall Ltd.issues 10,000 Debentures of Pass necessary journal entries relating to the issue of Debentures for the following:
(a) Issued ₹ 28,000; 10% Debentures of ₹ 100 each at a premium of 15% redeemable at par.
(b) Issued ₹ 30,000; 10% Debentures of ₹ 100 each at a premium of 10% and redeemable at a premium of 15%.
(c) Issued ₹ 80,000; 10% Debentures of ₹ 100 each at par repayable at a premium of 10%. 100 each at a discount of 10% redeemable at a premium of 5% after the expiry of three years.
Pass journal entries for the issue of these debentures.
Answers
Answer:
(c) Issued ₹ 80,000; 10% Debentures of ₹ 100 each at par repayable at a premium of 10%. 100 each at a discount of 10% redeemable at a premium of 5% after the expiry of three years.
Pass journal entries for the issue of these debentures
Hope it helps brainly
Solution:
In the books of Footfall Ltd.
Journal Entries
Particulars Debit Rs. Credit Rs.
Bank Ac Dr. 9,00,000
To Debenture Application A/c 9,00,000
(Being debentures application money received for 10,000 debentures at Rs.90 each)
Debenture Application A/c Dr. 9,00,000
Discount on Issue of Debentures An Dr. 1,00,000
Loss On Issue of Debentures Ac Dr. 50,000
To Debenture A/c 10,00,000
To Premium on Redemption A/c 50,000
(Being 10,000 debenture of Rs.I00 each issued at 10% discount with the term repayable at 5% redemption)
Debentures A/c Dr. 10,00,000
Premium on Redemption A/c Dr. 50,000
To Debenture holders' A/c 10,50,000
(Being debenture due for redemption along with premium on redemption) Debenture holders Ac Dr. 10,50,000 To Bank An 10,50,000 (Being amount due for redemption paid to debenture holders)