Question

Pass necessary Journal entries relating to the issue of debentures for the follorine
(i) Issued ₹ 4,00,000; 9% Debentures of 100 each at a premium of 8% redeemante
at 10% premium.
(it) Issued 6,00,000; 9% Debentures of 100 each at par, repayable at a premium of 10%
(iii) Issued 10,00,000; 9% Debentures of 100 each at a premium of 5%, redeemable
at par.​

Answer 1

Answer:

1. Deb app and allot .Dr 432000

loss on issue. Dr 40000

to 9% Deb ac 400000

to SPR 32000

to premium on redemption. 40000