Question

Journalise the following:
(a) A debenture issued at ₹ 95, repayable at ₹ 100.
(b) A debenture issued at ₹ 95, repayable at ₹ 105.
(c) A debenture issued at ₹95, repayable at ₹ 105.
The face value of debenture is ₹ 100 in each of the above cases.

Answer 1

Solution:

                                              Journal Entries  

Sr. No.       Particulars                                         Debit Rs.     Credit Rs.

a.                Bank A/c                               Dr.             95

      To Debenture Application Ac                                          95

(Being debentures application money received )

          Debenture Application Ac          Dr.            95

Discount On Issue of Debentures A/c   Dr.            5

             To Debenture Ac                                                         100

(Being debenture of Rs.100 each issued at Rs.95 with the term repayable at par)

b.              Bank A/c                                  Dr.             95

         To Debenture Application A/c                                         95

(Being debenture application money received)

           Debenture Application A/c          Dr.            95

c.                Bank A/c                                  Dr.         I00

        To Debenture Application A/c                                            100

(Being debenture application received)

        Debenture Application A/c               Dr.         100

     Loss On Issue of Debentures A/c        Dr.         5

             To Debenture A/c                                                           100

To premium on Redemption Ac                                                     5

(Being debenture of Rs.100 each issued at par with the term repayable at Rs.105)