Pass necessary Journal entries relating to the issue of debentures for the following:
(a) Issued ₹ 4,00,000; 9% Debentures of ₹ 100 each at a premium of 8% redeemable at 10% premium.
(b) Issued ₹ 6,00,000; 9% Debentures of ₹ 100 each at par, repayable at a premium of 10%.
(c) Issued ₹ 10,00,000; 9% Debentures of ₹ 100 each at a premium of 5%, redeemable at par.

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Solution

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

(a)

Bank A/c

Dr.

4,32,000

To Debenture Application and Allotment A/c

4,32,000

(Application money received on 4,000 9% Debentures)

Debenture Application and Allotment A/c

Dr.

4,32,000

Loss on Issue of Debenture A/c

Dr.

40,000

To 9% Debentures A/c

4,00,000

To Securities Premium Reserve A/c

32,000

To Premium on Redemption of debentures A/c

40,000

(4,000; 9% Debentures issued at a premium of Rs 8 and redeemable at premium of 10%)

(b)

Bank A/c

Dr.

6,00,000

To Debenture Application and Allotment A/c

6,00,000

(Application money received on 6,000 9% Debentures)

Debenture Application and Allotment A/c

Dr.

6,00,000

Loss on Issue of Debenture A/c

Dr.

60,000

To 9% Debentures A/c

6,00,000

To Premium on Redemption of Debentures A/c

60,000

(6,000; 9% Debentures issued at par and redeemable at premium of 10%)

(c)

Bank A/c

Dr.

10,50,000

To Debenture Application and Allotment A/c

10,50,000

(Application money received on 10,000 9%Debentures)

Debenture Application and Allotment A/c

Dr.

10,50,000

To 9% Debentures A/c

10,00,000

To Securities Premium Reserve A/c

50,000

(1,000; 9% Debentures issued at a premium of Rs 5)

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Similar questions

Q. Pass necessary Journal entries relating to the issue of debentures for the following:
(a) Issued ₹ 28,000; 10% Debentures of ₹ 100 each at a premium of 15% redeemable at par.
(b) Issued ₹ 30,000; 10% Debentures of ₹ 100 each at a premium of 10% and redeemable at a premium of 15%.
(c) Issued ₹ 80,000; 10% Debentures of ₹ 100 each at par repayable at a premium of 10%.

Q. Pass necessary Journal entries for the issue of debentures in the following cases:
(a) ₹ 40,000; 12% Debentures of ₹ 100 each issued at a premium of 5% redeemable at par.
(b) ₹ 70,000; 12% Debentures of ₹ 100 each issued at a premium of 5% redeemable at ₹ 110.

Q. Pass necessary Journal entries for the issue of Debentures in the following cases:
(a) ₹ 40,000; 15% Debentures of ₹ 100 each issued at a discount of 10% redeemable at par.
(b) ₹ 80,000; 15% Debentures of ₹ 100 each issued at a premium of 10% redeemable at a premium of 10%.

Give journal entries for the issue of debentures in the following conditions.

I. Issued 2,000, $12 %$ debentures of Rs 100 each at par, redeemable also at par.

II. Issued 2,000, $12 %$ debentures of Rs 100 each at a discount of $12 %$ , redeemable at par.

III. Issued 2,000, $12 %$ debentures of Rs 100 each at a premium of $5 %$ , redeemable at par.

IV. Issued 2,000, $12 %$ debentures of Rs 100 each at par but redeemable at $5 %$ premium.

V. Issued 2,000, $12 %$ debentures of Rs 100 each at a discount of $2 %$ , redeemable at a premium of $5 %$ .

VI. Issued 2,000, $12 %$ debentures of Rs 100 each at a premium of $5 %$ , redeemable at a premium of $10 %$ .

Beeta Ltd, issued 5,000, $9 %$ debentures of Rs 500 each. Pass the necessary journal entries for the issue of Debentures in the books of the company in the following cases:

(i) When debentures are issued at $10 %$ premium and redeemable at par.

(ii) When debentures are issued at par and redeemable at $10 %$ premium.

(iii) When debentures are issued at $5 %$ premium and redeemable at $10 %$ premium.

(iv) When debentures are issued at $25 %$ to the vendors for machinery purchased for Rs 6,25,000.

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Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(a)	Bank A/c	Dr.		4,32,000
	To Debenture Application and Allotment A/c				4,32,000
	(Application money received on 4,000 9% Debentures)

	Debenture Application and Allotment A/c	Dr.		4,32,000
	Loss on Issue of Debenture A/c	Dr.		40,000
	To 9% Debentures A/c				4,00,000
	To Securities Premium Reserve A/c				32,000
	To Premium on Redemption of debentures A/c				40,000
	(4,000; 9% Debentures issued at a premium of Rs 8 and redeemable at premium of 10%)

(b)	Bank A/c	Dr.		6,00,000
	To Debenture Application and Allotment A/c				6,00,000
	(Application money received on 6,000 9% Debentures)

	Debenture Application and Allotment A/c	Dr.		6,00,000
	Loss on Issue of Debenture A/c	Dr.		60,000
	To 9% Debentures A/c				6,00,000
	To Premium on Redemption of Debentures A/c				60,000
	(6,000; 9% Debentures issued at par and redeemable at premium of 10%)

(c)	Bank A/c	Dr.		10,50,000
	To Debenture Application and Allotment A/c				10,50,000
	(Application money received on 10,000 9%Debentures)

	Debenture Application and Allotment A/c	Dr.		10,50,000
	To 9% Debentures A/c				10,00,000
	To Securities Premium Reserve A/c				50,000
	(1,000; 9% Debentures issued at a premium of Rs 5)