Question

Give Journal Entries for the following. (i) Ram Ltd. issues 1,000, 6% Debentures of Rs.100 each, issued at par. (ii) Ram Ltd. issues 2,000, 5% Debentures of Rs.100 each, issued as 10% discount.

Answer 1

Answer:

(i)

bank a/c dr. 600000

to 6% debenture application and allotment a/c. 600000

(being, application received)

6% debentures application and allotment a/c dr. 600000

to 6% debentures a/c 600000

(being, application transferred)

(ii)

bank a/c dr. 180000

to 5% debentures application and allotment a/c 180000

(being, application received)

5% debentures application and allotment a/c dr 180000

discount on issue of debentures a/c dr 20000

to 5% debentures a/c 200000

(being, application transferred)