Suvidha Ltd purchased machinery worth Rs 198000 from suppliers Ltd.The payment was made by issue opf 12% debentures of Rs 100 each.
Pass the necessary joural entries for the purchase of machinery and issue of debentures when:
(i) Debentures are issued at par,
(ii) Debentures are issued at 10% descount, and
(iii) Debentures are issued at 10% premium

Explanation

Working
(a) (Face value of debenteures 100)
(Less: Descount 10% 10)/(Value at which debenture issued 90)
)Number of debentures issued fin case of 10% discount = Rs198000)/(90)
=2200 debenture
(b)
(Face value of debenture 100)/(Add:premium 10 % 10)Value at which debenture issued 110)
Number of debentur3es issued in case of 10% premium `=Rs 198000/110`
=1800 Debentures