be Limited issued 9% debenture of rupees hundred each other at a premium of 20% to vendors for purchase of - Accountancy - Issue of Debentures

Question

be Limited issued 9% debenture of rupees hundred each other at a
premium of 20% to vendors for purchase of plant costing 600000 pass
the necessary journal entries for the payment made to vendors

Arjita Bhadauria · Accepted Answer

Solution:-

JOURNAL

Date

Particulars

L
F

Debit

Credit

i)

Plant
A/c

Dr

600000

To Vendor
A/c

600000

(Being Plant
Purchased)

vendor Co
A/c

Dr

600000

To 9% debentures A/c (5000 ×
100)

500000

To Securities premium a/c (5000
× 20)

100000

(Being debentures issued to the
vendor at 20 %
premium)

No of Debenture issued = 6,00,000/120 = 5000

	JOURNAL
Date	Particulars		L.F.	Debit	Credit
i)	Plant A/c	Dr.		600000
	To Vendor A/c				600000
	(Being Plant Purchased)

	vendor Co. A/c	Dr.		600000
	To 9% debentures A/c (5000 × 100)				500000
	To Securities premium a/c (5000 × 20)				100000
	(Being debentures issued to the vendor at 20 % premium)

be Limited issued 9% debenture of rupees hundred each other at a premium of 20% to vendors for purchase of plant costing 600000 pass the necessary journal entries for the payment made to vendors