On 1-4-2017, Fast Computer Ltd. Issued 20,000, 6% debentures of Rs. 100 each at a discount of 4% redeemable at a premium of 5% after three years. The amount was payable as follows : On application Rs. 50 per debenture. Balance on allotment. Pass the journal entries for issue of debentures .
Footfall Ltd. Issue 10,000 Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 5% after the expiry of three years. Pass Journal entries for the issue of these debentures.
Alka Ltd. Issued 5,000, 10% Debentures of ₹ 1,000 each at a discount of 10% redeemable at premium of 5% after 5 years. Accounting to the terms of issue ₹ 500 was payable on application and the balance amount on alltment of debentures. Record necessary enteries regarding issue of 10% Debentures .
On 1st April, 2018, Amro Ltd. Issued 10,000, 9% Debentures of ₹ 100 each at a discount of 10% redeemable at par after 5 yea₹. The issue price is payable along with application. The debentures were subscribed. It has a balance of ₹ 1,75,000 in Securities Premium Reserve. Pass Journal entries for issue of debentures and writing off the discount and prepare Discount of Issue of Debentures Account.
DK GOEL-WRITING OFF DISCOUNT/LOSS ON ISSUE OF DEBENTURES-ILLUSTRATION 4.
