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Reliance Ltd. purchased machinery costing ₹ 1,35,000. It was agreed that the purchase consideration be paid by issuing 9% Debentures of ₹ 100 each. Assume debentures have been issued (i) at par and (ii) at a discount of 10%. Give necessary journal entries. |
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Answer» RE YOUR QUESTION IS VERY NICEXYZ Ltd. ISSUED 5,000, 10% Debentures of ₹ 100 each on 1st April, 2015 at a discount of 10% REDEEMABLE at a premium of 10% after 4 YEARS. Give journal entries for the year ended 31st March, 2016, assuming that the interest was payable half-yearly on 30TH September and 31st March. Tax is to be DEDUCTED @ 10%.HOPE THIS HELPS |
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