Redemption of debentures

SREEABITHA SENTHILKUMAR

May 1 2022 Bank A/c Dr. 9,00,000 Discount on Issue of Debenture A/c Dr. 1,00,000 Loss on Issue of Debenture A/c Dr. 100,000 To Debentures A/c. 10,00,000 To Premium on Redemption of Debenture A/c. 11,00,000 (8% debenture are issued at 10% discount and redeemable at 10% premium) Jan 1 2023 Bank A/c Dr 11,00,000 To securities premium A/c. 1,00,000 To equity share capital A/c. 10,00,000 ( Issue of 1,00,000 equity shares at premium of Rs 1)

SREEABITHA SENTHILKUMAR

May 1 2022 Bank A/c Dr. 9,00,000 Discount on Issue of Debenture A/c Dr. 1,00,000 Loss on Issue of Debenture A/c Dr. 100,000 To Debentures A/c. 10,00,000 To Premium on Redemption of Debenture A/c. 11,00,000 (8% debenture are issued at 10% discount and redeemable at 10% premium) Jan 1 2023 Bank A/c Dr 11,00,000 To securities premium A/c. 1,00,000 To equity share capital A/c. 10,00,000 ( Issue of 1,00,000 equity shares at premium of Rs 1)

Thread Starter

Did I pass interest on debentures entry and discount on issue of debenture set off entry ??

Thread Starter

And why mam u credited premium on Redemption on debentures with 1100000 ??

SREEABITHA SENTHILKUMAR

I couldn't understand what ur asking

Thread Starter

Mam as per question debentures were issued on discount and it is a loss . So these loss is set off or not ??

Thread Starter

Mam 8% debentures were issued so interest should be paid or not ??

SREEABITHA SENTHILKUMAR

Since interest date was not given I did not include it in the entry