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Surya Ltd. issued 2,500, 15% Debentures of Rs 100 each at a discount of 10% payabale as follows: Rs 25 on application; Rs 25 on allotment and the balance on first call. Applications were received for 2,000 debentures and the allotment was made. All the moneys were dully received. Expenses on issue of deberatures amounted to Rs 8,000. Directors decided to write off 1/5th of "Expenses on issue A/c" and "Discount on Debentures A/c" from Statement of profit and loss each year. Pass journal entries (for first year only). |
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Answer» Surya Ltd. issued 2,500, 15% Debentures of Rs 100 each at a discount of 10% payabale as follows: Rs 25 on application; Rs 25 on allotment and the balance on first call. Applications were received for 2,000 debentures and the allotment was made. All the moneys were dully received. Expenses on issue of deberatures amounted to Rs 8,000. Directors decided to write off 1/5th of "Expenses on issue A/c" and "Discount on Debentures A/c" from Statement of profit and loss each year. Pass journal entries (for first year only). |
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