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Question -

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



Answer -

S.No.

Particulars

L.F.

Debit

Amount

Credit

Amount ₹

(i)

Bank A/c

Dr.

95

Discount on Issue of Debenture A/c

Dr.

5

To Debenture A/c

100

(Debenture of ₹ 100 issued at ₹ 5 discount

with the term repayable at ₹ 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 ₹ 100 issued at a discount of

₹ 5 and with the term repayable at ₹ 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 ₹ 100 issued with the term

repayable at ₹ 105)

 

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