On 1st April 2017 X Lld issued 8000,9% debentures of Rs 100 each at a discount of 6%
redeemable at a premium of 14% after 5 year. Interest in paid half yearly basis and
TDS is assumed at 20%.Pass journal entries for the year ended 31st March 2018
Answers
1-4-17 bank account..... Dr. 7,32,000
to debenture application and allotment 7,32,000
1-4-17 debenture application and allotment 7,32,000
discount on issue of debenture 48,000
loss on issue of debenture 1,12,000
to 9% debenture.... 8,00,000
to premium on redemption 1,12,000
30-9-17 interest on debenture. ... Dr. 36,000
to debenture holder 32,400
to tax deducted at source 3600
30-9-17 debenture holder 32,400
tax deducted at source 3600
to bank account 36,000
31-3-18 interest on debenture. ... Dr. 36,000
to debenture holder 32,400
to tax deducted at source 3600
31-3-18 debenture holder 32,400
tax deducted at source 3600
to bank account 36,000
31-3-18 statement of profit/loss 2,22,000
to discount on issue of debenture 48,000
to loss on issue of debenture 1,12,000
to interest on debenture 72,000