Question

Joy Ltd. 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.

Answer 1

Books of Joy Limited Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
	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)

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