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Question -

Journalise the following:
(i) A debenture issued at тВ╣ 95, repayable at тВ╣ 100;
(ii) A debenture issued at тВ╣ 95, repayable at тВ╣ 105; and
(iii) A debenture issued at тВ╣ 100, repayable at тВ╣ 105;
The face value of debenture in each of the above cases is тВ╣ 100.



Answer -

S.No.

Particulars

L.F.

Debit

Amount

тВ╣

Credit

Amount тВ╣

(i)

Bank A/c

Dr.

95

Discount on Issue of Debenture A/c

Dr.

5

To Debenture A/c

100

(Debenture of тВ╣ 100 issued at тВ╣ 5 discount

with the term repayable at тВ╣ 100)

(ii)

Bank A/c

Dr.

95

Loss on Issue of Debenture A/c

Dr.

10

To Debenture A/c

100

To Premium on Redemption of Debentures

5

(Debenture of тВ╣ 100 issued at a discount of

тВ╣ 5 and with the term repayable at тВ╣ 105)

(iii)

Bank A/c

Dr.

100

Loss on Issue of Debenture A/c

Dr.

5

To Debenture A/c

100

To Premium on Redemption of Debenture A/c

5

(Debenture of тВ╣ 100 issued with the term

repayable at тВ╣ 105)

┬а

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