Question

Journalise the following transaction at the time of issue of 12% Debentures:
Nandan Ltd. issued ₹ 90,000, 12% Debentures of ₹ 100 each at a discount of 5% redeemable at 110%.

Answer 1

Hey mate your answer is

XYZ Ltd. issued 5,000, 10% Debentures of ₹ 100 each on 1st April, 2015 at a discount of 10% redeemable at a premium of 10% after 4 years. Give journal entries for the year ended 31st March, 2016, assuming that the interest was payable half-yearly on 30th September and 31st March. Tax is to be deducted @ 10%.

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Answer 2

Solution:

                                              Journal  

Particulars                                                         Debit Rs.         Credit Rs.

Bank A/c                                                     Dr.    85,500

To Debenture Application and Allotment A/c                         85,500

(900, 12% Debentures issued at a discount of 5%)

Debenture Application and Allotment A/c  Dr. 85,500

Loss on Issue of Debentures A/c                Dr.   13,500

To 12% Debentures A/c                                                               90,000

To Premium on Redemption of Debentures A/c                      9,000

(900, 12% Debentures issued at a discount of 5%, redeemable at a premium of 10%)