Question

ii. On April 1, 2019 Z Ltd. issued, 100 8% Debentures of Rs.100 each

at premium of 5%, to be redeemable at a premium of 10%, after

5 years​

Answer 1

Answer:

1) Bank a/c. Dr. 10,500

To debenture application a/c. 10,500

2) Debenture application a/c Dr. 10,500

Loss on issue of debenture a/ Dr. 1,000

To 8%Debenture a/c. 10,000

To securities premium reserve. 500

a/c

To Debenture redemption. 1,000

premium a/c

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