wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

what will be the journal entry for following:

Expenses on issue of debentures amounted to rs 5000 were to be written off.Pass journal entry.

Open in App
Solution

Dear Student, the solution of your query is as follows.
Journal Entry
Date Particulars L.F. Debit Amount
Rs
Credit Amount
Rs
Debenture Issue Expenses A/c Dr. 5,000
To Bank A/c 5,000
(Debenture Issue expenses paid)
Profit and Loss A/c Dr. 5,000
To Debenture Issue Expenses A/c 5,000
(Amount of Debenture Issue Expenses transferred to Profit and Loss account)


However, sometimes it is given in the question that Debenture Issue Expenses are be written in 3 or 5 years equally. In that case, amount which is to be written in particular year transferred to Profit and Loss A/c.

flag
Suggest Corrections
thumbs-up
0
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Analysing Capital Accounts
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon