Care customer Ltd issued 50000 9 percent debenture of RUPEES 10 each on 1st April 2020 redeemable at a premium - Accountancy - Issue of Debentures

Question

Care customer Ltd issued 50000 9 percent debenture of RUPEES 10
each on 1st April 2020 redeemable at a premium of 10% after 10
years according to the terms of issue 4 rupees is payable on
application and balance on allotment of debentures record necessary
journal entries according issue of debenture

Aditi Jain · Accepted Answer

Books of Care Cosmetics Ltd.
Journal
Date	Particular		L.F.	Debit `	Credit `
1-4-2020	Bank A/c	Dr.		2,00,000
	To Debenture Application A/c				2,00,000
	(Being Application Money received for 50,000 debenture for `4)
1-4-2020	Debenture Application A/c Dr.			2,00,000
	To 9% Debenture A/c				2,00,000
	(Being interest paid)
1-4-2020	Debenture Allotment A/c Dr.			3,00,000
	Loss on Redemption on Debenture A/c Dr.			30,000
	To 9% Debenture A/c				3,00,000
	To Premium on redemption of debenture A/c				30,000
	(Being interest allowed on debenture)