Question

TCL Co. Ltd has taken loan of Rs.5, 00,000 from its bank and gave 6,000, 12% debentures of Rs.100 each as a collateral security. Pass journal entries.
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Answer 1

Answer:

it's upper level question mate? mate

Answer 2

A journal entry is a record of the various business transactions in a company's accounting records.

• The correct entries are -

Bank A/c 5,00,000

To Loan A/c 5,00,000

( Being loan taken against issuing 12% debentures as collateral security)

Debenture Suspense A/c 6,00,000

To 12% debenture A/c  6,00,000

(Being issues 12% debentures of Rs. 6,00,000 each as collateral security)

Working Notes

Bank gave 6000 shares of 100 each, thus

Total shares = 6,000 x 100

= 6,00,000