A limited purchase machinery from G Limited for a book value of rupees 4,00,000 The consideration was paid - Accountancy - Issue and Redemption of Debentures

Question

A limited purchase machinery from G Limited for a book value of
rupees 4,00,000 The consideration was paid by the issue of 10%
debentures of rupees 100 each at a premium @25% The debentures
account was credited with?

Sirjan Arneja · Accepted Answer

Dear Student,

The entry would be:

Furniture A/c
To 10% Debentures A/c
To SPR
(Being 3200 debentures issued for purchase of machinery)

4,00,000

320000
80000

the amount of debenture account can be calculated as under:x+25100 x=4,00,000x+14 x=4,00,00054 x=4,00,000x=3,20,000

Regards

A limited purchase machinery from G Limited for a book value of rupees 4,00,000 . The consideration was paid by the issue of 10% debentures of rupees 100 each at a premium @25%.The debentures account was credited with?