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On 1.4.2015, J.K. Ltd. issued 8,000, 9% debentures of Rs 1,000 each at a discount of 6%, redeemable at a premium of 5% after three years. The company closes its books on 31st March every year. Interest on 9% debentures is payable on 30th september and 31st March every year. The rate of tax deducted at source is 10%. Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31.3.2016. |
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Answer» On 1.4.2015, J.K. Ltd. issued 8,000, 9% debentures of Rs 1,000 each at a discount of 6%, redeemable at a premium of 5% after three years. The company closes its books on 31st March every year. Interest on 9% debentures is payable on 30th september and 31st March every year. The rate of tax deducted at source is 10%. Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31.3.2016. |
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