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A company issues the following debentures. (i) 10,000, 12% debentures of Rs.100 each at par but redeemable at premium of 5% after 5 years; (ii) 10,000, 12% debentures of Rs.100 each at a discount of 10% but redeemable at par after 5 years; (iii) 5,000, 12% debentures of Rs.1,000 each at a premium of 5% but redeemable at par after 5 years; (iv) 1,000, 12% debentures of Rs.100 each issued to a supplier of machinery costing Rs.95,000. The debentures are repayable after 5 years; and (v) 300, 12% debentures of Rs.100 each as a collateral security to a bank which has advanced a loan of Rs. 25000 to the company for a period of 5 years. pass the journal entries to record the (i) issue of debewntures; and (ii) repayment of debentures after the given period. |
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Answer» A company issues the following debentures. (i) 10,000, 12% debentures of Rs.100 each at par but redeemable at premium of 5% after 5 years; (ii) 10,000, 12% debentures of Rs.100 each at a discount of 10% but redeemable at par after 5 years; (iii) 5,000, 12% debentures of Rs.1,000 each at a premium of 5% but redeemable at par after 5 years; (iv) 1,000, 12% debentures of Rs.100 each issued to a supplier of machinery costing Rs.95,000. The debentures are repayable after 5 years; and (v) 300, 12% debentures of Rs.100 each as a collateral security to a bank which has advanced a loan of Rs. 25000 to the company for a period of 5 years. pass the journal entries to record the (i) issue of debewntures; and (ii) repayment of debentures after the given period. |
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