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On 1 st April, 2016, Alok Ltd. Issued 7,...

On 1 st April, 2016, Alok Ltd. Issued 7,000, 10% Debentures of Rs. 500 each at a premium of 5% and redeemable at a premium of 10% after 5 years. According to the terms of issue, Rs.200 was payable on application and balance on allotment. Record necessary entries regarding issue of debentures and writing off loss on issue of debentures.

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Alok Ltd. Issued 7,000, 10% Debentures of ₹500 each at a premium of ₹ 50 par debenture redeemable at a premium of 10% after 5 years. According to the terms fo issue, ₹ 200 was payable on application and balance on allotment. Record necessary Journal entries as the time of issue of 10% Debentures.

Knowledge Check

  • Issued 4,000 , 12% debentures of .Rs 100 each at a premium of 4%, redeemable at a premium of 10%. In such case:

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    Loss on Issue will be debited by .Rs 24,000
    B
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    D
    Premium on Redemption will be credited by .Rs 24,000

  • A Ltd. Issued 1,000, 10% debentures of .Rs 100 each at a premium of 5 % . What will be the total amount of interest for one year:

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  • Electronics Ltd. Issued 10,000, 6% Debentures of Rs 100 each at a premium of Rs 10. It wil credit 6% Debentures by

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