Answer to Question #134290 in Accounting for Rohit

Question

S Ltd. Issued Rs.80,000 13% debentures at 5% discount, which are redeemable at 10% premium after 3 yers. Paas the journal entry on issue of debenture in the books of company.

Answer 1

Answer:

Debenture Allotment Account $76000

Discount on Issue of Debenture Account $4000

To 13%Debenture Account $80000

(being Debenture Issue at Discount)

Bank Account $76000

To Debenture Allotment Account $76000

(being cash received from allotment)