R.Ltd. Offered 20,00,000, 10% Debenture of Rs 200 each At a Discount of 7% Redeemable at Premium -Accountancy

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R.Ltd. offered 20,00,000, 10% Debenture of Rs 200 each at a discount of 7% redeemable at premium of 8% after 9 years. Record necessary journal entries in the books of R. Ltd.




Books of R. Ltd.

Journal

DateParticularsL.F.Amount (Dr.)Amount (Cr.)
Bank A/cDr.37,20,00,000
  To 10% Debenture Application and Allotment A/c37,20,00,000
( Being money received for 10% Debenture Application and Allotment for 20,00,000 shares @ Rs 193 each )
10% Debenture Application and Allotment A/cDr.37,20,00,000
Discount on Issue of Debenture A/cDr.3,20,00,000
Loss on Issue of DebentureDr.2,80,00,000
   To 10% Debenture A/c40,00,00,000
To Premium on Redemption of Debenture3,20,00,000
(Being Allotment of 20,00,000 debenture @ Rs 200 each at 7% discount and at the time of redeemable with  8% premium on redemption)

Chapter-2 Issue and Redemption of Debentures-II



Location: India

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