Question

Q2.Modern Equipments Ltd. issued 4,00,000, 12% debentures of Rs. 100 payable as follows : On application Rs. 30 On allotment Rs. 70 The debenture were fully subscribed and all the money was duly received. As per the terms of issue, debentures are redeemable at Rs.110 per debenture. Record necessary entries regarding issue of debentures.​

Answer 1

Answer:

Bank ac dr. 3000

To 12% prefernce share 3000

12% prefernce share dr. 3000

To preference share capital ac 3000

Prefernce share allotment dr. 7000

To preference share capital 7000

Bank ac dr. 7000

To prefernce share allotment 7000

Debentures ac dr. 10000

Debentures at premium 1000

To debentures holder accounts 11000

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