Question

. Surbhi Food Limited issued 10,000, 10 % debentures of ` 200 each at a
premium of 10%. The debentures are redeemed on completion of term at par.
Write journal entries in the books of the company for issued and redemption
of debentures (without narration).

Answer 1

Bank A/C. Dr. 2200000

To Debenture App. & Allot. A/C. 2200000

Debenture App. & Allot. A/C. Dr. 2200000

To 10% Debentures A/C. 2000000

To Securities Premium A/C. 200000

10% Debentures A/C. Dr. 2000000

To Debentureholders A/C. 2000000

Debentureholders A/C. Dr. 2000000

To Bank A/C. 2000000