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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Joy Ltd. bought a Building for ₹9,00,000, and the consideration was paid by issuing 10% Debentures of the nominal (face) value of ₹100 each at a discount of 10%. Give Journal entries.
JOURNAL (Books of Joy Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Building A/c Dr. | 9,00,000 | |||
| To Vendor A/c | 9,00,000 | |||
| (Building purchased) | ||||
| Vendor A/c Dr. | 9,00,000 | |||
| Discount on Issue of Debentures A/c Dr. | 1,00,000 | |||
| To 10% Debentures A/c | 10,00,000 | |||
| (Issued 10,000; 10% Debentures at a 10% discount, in satisfaction of the purchase consideration) |
Working Note: Number of debentures to be issued = Purchase consideration ÷ Issue price = 9,00,000 ÷ 90 = 10,000 debentures.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 2 Chapter 2 Q.16 - Issue of Debentures", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 2 - Issue of Debentures.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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