Journal 

Date 
Particulars 
L.F. 
Debit Amount (Rs) 
Credit Amount (Rs) 

2014 





Apr.01 
Bank A/c($10,00,00010,00,000\times \frac{6}{100}$) 
Dr. 

9,40,000 


To Debenture Application and Allotment A/c 



9,40,000 

(Application money received on issue of Debenture) 










Apr.01 
Debenture Application and Allotment A/c 
Dr. 

9,40,000 


Discount on Issue of Debenture A/c 
Dr. 

60,000 


To 9% Debentures A/c 



10,00,000 

(Application money transferred to Debentures A/c) 




2015 





Mar.31 
Statement of P&L A/c 
Dr. 

20,000 


To Discount on Issue of Debenture A/c 



20,000 

(Proportionate discount on Issue of Debenture written off) 










2016 
Statement of P&L A/c Dr. 

16,000 

Working Notes:
Calculation of amount of Discount to be written off every year:
$AmountofDiscount=10,00,000\times \frac{6}{100}=60,000$
Year End  Outstanding Amount (Rs.)  Ratio  Discount 
31st March, 2015  10,00,000  10  $60,000\times \frac{10}{30}=20,000$ 
31st March, 2016  8,00,000  8  $60,000\times \frac{8}{30}=16,000$ 
31st March, 2017  6,00,000  6  $60,000\times \frac{6}{30}=12,000$ 
31st March, 2018  4,00,000  4  $60,000\times \frac{4}{30}=8,000$ 
31st March, 2019  2,00,000  2  $60,000\times \frac{2}{30}=4,000$ 
Total  30  60,000 