Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Mercury Ltd. issued ₹1,00,000, 9% Debentures at a discount of 6% on 1st April, 2023. These debentures are to be redeemed equally, spread over 5 annual instalments. Pass the Journal entries for the issue of debentures and for writing off the discount.
JOURNAL (Books of Mercury Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2023 April 01 | Bank A/c Dr. | 94,000 | ||
| To Debentures Application and Allotment A/c | 94,000 | |||
| (Application money received on 9% Debentures issued at a 6% discount) | ||||
| April 01 | Debentures Application and Allotment A/c Dr. | 94,000 | ||
| Discount on Issue of Debentures A/c Dr. | 6,000 | |||
| To 9% Debentures A/c | 1,00,000 | |||
| (Application and allotment money adjusted) | ||||
| 2024 March 31 | Statement of Profit and Loss A/c Dr. | 6,000 | ||
| To Discount on Issue of Debentures A/c | 6,000 | |||
| (Discount on issue of debentures written off) |
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.48 - 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.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Vol 2 Chapter 2 Q.48 - Issue of Debentures" instantly.