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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
ZK Ltd. issued ₹4,00,000, 9% Debentures of ₹100 each at a discount of 5%, redeemable at a premium of 10%. Pass the necessary Journal entries for the above transactions in the books of ZK Ltd. (CBSE 2019)
JOURNAL (Books of ZK Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 3,80,000 | |||
| To 9% Debenture Application A/c | 3,80,000 | |||
| (Debenture application money received at a 5% discount) | ||||
| 9% Debenture Application A/c Dr. | 3,80,000 | |||
| Discount on Issue of Debentures A/c Dr. | 20,000 | |||
| Loss on Issue of Debentures A/c Dr. | 40,000 | |||
| To 9% Debentures A/c | 4,00,000 | |||
| To Premium on Redemption of Debentures A/c | 40,000 | |||
| (Debentures of ₹4,00,000 issued at a 5% discount, redeemable at a 10% premium) |
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.35 - 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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