Question

Ram Lal issued 1,00,000; 8% debentures of 10 each at 12 on 1 April 2014. The issue was fully subscribed. In terms of the issue of debentures, interest was payable at the end of the financial year. Pass the journal entries for the above transactions. ​

Answer 1

Answer:

Bank A/c Dr. 10,00,000

To 8% Debentures Application

and allotment A/c 10,00,000

8% Debenture Application

and allotmennt A/c Dr. 10,00000

To 8% Debentures A/c 10,00,000