during the year he sold his 7% government bonds of rupees 2000 at 2% premium Share with your friends Share 0 Rahul Kumar answered this It means 7 %Govt .Bond Sold by him at a profit of 2 % . i.e Sale value will be : 2000+2000×2/100= 2040 -1 View Full Answer R C Gupta answered this The journal entry will beBank a/c Dr 2040/-To 7% Govt. Bonds ( or Investments A/C) A/C 2000/-To Profit and Loss A/C 40/- 0