A. Ltd. issued 90,00,000, 9% Debenture of Rs 50 each at a discount of 8%, redeemable at par any time after 9 years. Record necessary entries in the books of A. Ltd

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A. Ltd. issued 90,00,000, 9% Debenture of Rs 50 each at a discount of 8%, redeemable at par any time after 9 years. Record necessary entries in the books of A. Ltd.




Books of A. Ltd.

Journal

DateParticularsL.F
Amount
(Dr.)
Amount
(Cr.)
Bank A/cDr.41,40,00,000
  To 9% Debenture Application A/c41,40,00,000
( 9% debenture money received
@ Rs 46 on 90,000 , 9% debenture )
9% Debenture Application A/cDr.41,40,00,000
Discount on Issue of debentureDr.3,60,00,000
  To 9% debenture application A/c45,00,00,000
( Being 9% debenture application money transferred to 9% debenture account )

Chapter-2 Issue and Redemption of Debentures-II



Location: India

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