A limited company bought a Building for ₹ 9,00,000 and the consideration was paid by issuing 10% Debentures of the normal (face) value of ₹ 100 each at a discount of 10%.
Give journal entries.

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Solution

Journal

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

Building A/c

Dr.

9,00,000

To Vendor A/c

9,00,000

(Building purchased)

Vendor A/c

Dr.

9,00,000

Discount on Issue of Debentures A/c

Dr.

1,00,000

To 10% Debentures A/c

10,00,000

(Issued 10,000, 10% debentures at 10% discount)

Working Note:

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Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	Building A/c	Dr.		9,00,000
	To Vendor A/c				9,00,000
	(Building purchased)

	Vendor A/c	Dr.		9,00,000
	Discount on Issue of Debentures A/c	Dr.		1,00,000
	To 10% Debentures A/c				10,00,000
	(Issued 10,000, 10% debentures at 10% discount)

A limited company bought a Building for ​₹ 9,00,000 and the consideration was paid by issuing 10% Debentures of the normal (face) value of ​₹ 100 each at a discount of 10%. Give journal entries.

Journal Date Particulars L.F. Debit Amount Rs Credit Amount Rs Building A/c Dr. 9,00,000 To Vendor A/c 9,00,000 (Building purchased) Vendor A/c Dr. 9,00,000 Discount on Issue of Debentures A/c Dr. 1,00,000 To 10% Debentures A/c 10,00,000 (Issued 10,000, 10% debentures at 10% discount) Working Note:

A limited company bought a Building for ₹ 9,00,000 and the consideration was paid by issuing 10% Debentures of the normal (face) value of ₹ 100 each at a discount of 10%.
Give journal entries.