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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
On 1st April, 2018, Sakshi Ltd. issued 1,000, 11% Debentures of ₹100 each at a discount of 6%, redeemable at a premium of 5% after three years. Pass the necessary Journal entries for the issue of debentures in the books of Sakshi Ltd. (CBSE 2020)
JOURNAL (Books of Sakshi Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Bank A/c Dr. | 94,000 | |||
| To Debenture Application A/c | 94,000 | |||
| (Application money received for 1,000 debentures at ₹94 each) | ||||
| Debenture Application A/c Dr. | 94,000 | |||
| Discount on Issue of Debentures A/c Dr. | 6,000 | |||
| Loss on Issue of Debentures A/c Dr. | 5,000 | |||
| To 11% Debentures A/c | 1,00,000 | |||
| To Premium on Redemption of Debentures A/c | 5,000 | |||
| (1,000; 11% Debentures of ₹100 each issued at a 6% discount, redeemable at a 5% premium after three years) |
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.36 - 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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