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What is the entry for 1.to issue to the debenture-holders in S Ltd 8% Mortgage Debentures at Rs.96 in lieu of 6% Debentures in S. Ltd. which are to be redeemed at a premium of 20% , S ltd is transferor company , S ltd had 6% debentures of Rs.200000
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👉200,000*120% = X * 96 X = no of debentures issued X = 2500✔️ 👉Journal entry 6% deb A/c Dr. 200,000 Premium on redemption A/c Dr 40,000 Discount on issue of Deb. A/c Dr. 10,000 To 8% mortgage Deb. A/c.(2500*100) 250,000 Assumed face value of debenture issued 100
