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Pass necessary Journal entries for issue of 1,000, 7% Debentures of Rs. 100 each in the following cases: (a) Issued at 5% premium, redeemable at a premium of 10%. (b) Issued at a discount of 5%, redeemable at par. |
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Answer» (a) (i) Dr. Bank A/c and Cr. Debentures Application and Allotment A//c by Rs. 1,05,000. (ii) Dr. Debentures Application and Allotment A/c - Rs. 1,05,000 and Loss on Issue of Debentures A/c - Rs. 10,000, Cr. 7% Debentures A/c - Rs. 1,00,000, Securities Premium Reserve A/c - Rs. 5,000 and Premium on Redemption on Debentures A/c - Rs. 10,000. (b) (i) Dr. Bank A/c and Cr. Debentures Application and Allotment A/c by Rs. 95,000. (ii) Dr. Debentures Application and Allotment A/c - Rs. 95,000 and Discount on Issue of Debentures A/c - Rs. 5,000, Cr. 7% Debentures A/c - Rs. 1,00,000. |
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