9 X Ltd issued 6,000, 10% Debentures of Rs 100 each at a discount of 6% - Accountancy - Issue and Redemption of Debentures

Question

9 X Ltd issued 6,000, 10% Debentures of Rs 100 each at a discount
of 6% on 1st April, 2012 The debentures were repayable in
instalments of Rs 2,00,000 each starting from 31st March, 2014 Show
the Discount on Issue of Debentures Account for the year 2012-13 to
2015-16

Neha Arora · Accepted Answer

Dear Student,

Discount on Issue of Debentures Account

Dr

Cr

Date
Particulars
J F
Amount
Rs
Date
Particulars
J F
Amount
Rs

2012-13

Apr 01
10% Debentures A/c

36,000
Mar 31
Balance c/d

36,000

2013-14

Apr 01
Balance b/d

36,000
Mar 31
Statement of Profit and Loss

12,000

Mar 31
Balance c/d

24,000

36,000

2014-15

Apr 01
Balance b/d

24,000
Mar 31
Statement of Profit and Loss

12,000

Mar 31
Balance c/d

12,000

24,000

2015-16

Apr 01
Balance b/d

12,000
Mar 31
Statement of Profit and Loss

12,000

Discount on Issue=(6,000×100) @ 6%=Rs 36,000Discount to be written-off each year=36,0003=Rs 12,000â€‹

Discount on Issue of Debentures Account
Dr.				Cr.
Date	Particulars	J.F.	Amount Rs		Date	Particulars	J.F.	Amount Rs
2012-13					2012-13
Apr. 01	10% Debentures A/c		36,000		Mar. 31	Balance c/d		36,000

			36,000					36,000

2013-14					2013-14
Apr. 01	Balance b/d		36,000		Mar. 31	Statement of Profit and Loss		12,000
					Mar. 31	Balance c/d		24,000
			36,000					36,000
2014-15					2014-15
Apr. 01	Balance b/d		24,000		Mar. 31	Statement of Profit and Loss		12,000
					Mar. 31	Balance c/d		12,000
			24,000					24,000
2015-16					2015-16
Apr. 01	Balance b/d		12,000		Mar. 31	Statement of Profit and Loss		12,000

			12,000					12,000

9. X Ltd. issued 6,000, 10% Debentures of Rs. 100 each at a discount of 6% on 1st April, 2012. The debentures were repayable in instalments of Rs. 2,00,000 each starting from 31st March, 2014. Show the Discount on Issue of Debentures Account for the year 2012-13 to 2015-16.