Journalise the following transactions
a) Mehar Ltd. issued ₹ 1,00,000, 12% Debentures of ₹ 100 each at a premium of 5%
redeemable at par.
b) 12 % Debentures were issued at a discount of 10% to a vendor of machinery for
payment of ₹ 9,00,000
c) Issue of 10,000 11% debentures of ₹ 100 each as collateral in favour of State Bank
of India. Company opted to pass necessary entry for issue of debentures
Answers
Answer:
Bank account. dr. 105000
To debenture application
& allotment a/c. 105000
Debenture application
& allotment a/c. dr. 105000
To12℅ debenture account. 100000
To security premium
reserve. a/c. 5000
b)
Machinery. account. dr. 900000
To vendor account. 900000
Vendor account. dr 900000
Discount on issue
of Debenture. dr. 100000.
To 12℅ Debenture. account. 1000000
c)
Bank account. dr. 1000000
To bank loan account. 1000000
Debenture suspense a/c. dr 1000000
To11℅ debenture. account. 1000000
A.Bank a/c - - - - - - Dr. 1, 05,000
- To debenture application and allotment a/c 1,05,000
(Being the application money received @rs.100 each on 1,00,000 debentures).
Debenture application and allotment a/c - - - 1,05,000
- To 12% debenture a!/c - - - - - - 1,00,000
- To security premium reserve - - - - - 5,000
(being the application money transferred to the debenture account).
W. N
Calculation of premium :-
Issued - - - - - - - - 1,00,000
Add - premium of 5 % = 100000 × 5/100 = 5,000
Total amount = 1,00,000 + 5,000 = 1,05,000.
B. Vendors account - - - - - - Dr. 8,91,000
Discount on payment account - - - Dr. 9,000
- To 12%debenture account - - - -9,00,000.
(being payment made for machinery with discount of 9000).
Calculation of no. Of debentures -
Debentures - - - - - - 9,00,000.
Discount - - - - - - - - - 9,00,000 × 10 /100 =9,000.
Payment----------------- 9,00,000 - 9,000 = 8,91,000.
C. Debenture Suspense account - - - - - Dr. 1,00,000
- To 12%debentures account - - - - 1,00,000 .
(being the issue of 1,00,000 12%debentures of rs. 100 each as collateral security for a loan taken from state Bank of India).
Thanks.