Question

X Ltd. issued 10% Debentures of nominal value of ₹ 10,00,000 as follows:
(i) To sundry persons for cash at par $—$ ₹ 5,00,000 nominal.
(ii) To a vendor for ₹ 5,50,000 for purchase of fixed assets $—$ ₹ 5,00,000 nominal.
Pass journal entries in the books of X Ltd.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Bank A/c	Dr.		5,00,000
	Fixed Assets A/c	Dr.		5,50,000
	To 10% Debentures A/c				10,00,000
	To Security Premium Reserve A/c				50,000
	( Purchase consideration discharged by issue of 10% Debentures)