Illustration 31.
Pass Journal entries for issue of debentures in each of the following transactions:
(i) Star Ltd. issues 30,000; 10% Debentures of 100 each at a discount of 5% to be repaid at
par at the end of 5 years.
(ii) Green Ltd. issues 10% Debentures of 100 each for the total nominal (face) value of
*40,00,000 at a premium of 5% to be redeemed at par at the end of 5 years.
(111) Moon Ltd. issues 750,00,000; 10% Debentures of 100 each at par but redeemable at the
end of 10 years at 105%.
(iv) Strong Ltd. issues 7 60,00,000; 10% Debentures of 100 each at a discount of 5% repayable
at a premium of 10% at the end of 5 years.
(v) Smart Ltd. issues * 70,00,000; 9% Debentures of 100 each at a premium of 5% redeemable
at 110% at the end of 10 years.
Answers
Answer:
so here is your answer hope u can understand
Answer:
Explanation:
Journal entries
Bank A/c 2850000
To Deb app & allot 2850000
Debebture A/c Dr. 2850000
Discount A/c Dr. 150000
To debebtures A/c 30,00,000
Bank A/c 4200000
To Debentures A/c 4200000
Debenture A/c 4200000
To 10 % deb A/c 4000000
To Securities premium 200000
Bank A/c 5000000
To Debentures A/c 5000000
Dentures A/c 5000000
Loss on issue 250000
To 10 % deb 5000000
To Premium reserve 250000