on 1st April 2015 vvl issued 1000 9 percent debentures of rupees hundred Each Other a discount of 6% redeemable at a premium of 10% after 3 years after necessary journal entries for the issue of debenture and debenture interest for the year ended 31st March 2021 given that interest is payable on 30 Sep and 31st March the company closed its books on 31st March every year

                 Journal

 Date

                     Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

Apr.01

Bank A/c (1,000 × 94)

Dr.

94,000

  To Debenture Application and Allotment A/c

94,000

(Received application money on 1,000 Debenture)

Apr.01

Debenture Application and Allotment A/c

Dr.

94,000

Discount on Issue of Debenture A/c (1,000 ×6)

Dr.

6,000

Loss on Issue of Debenture A/c (1,000 × 10)

Dr.

10,000

  To 9% Debentures  A/c (1,000 × 100)

1,00,000

  To Premium on Redemption of Debentures A/c A/c (1,000 × 10)

10,000

(Application money transferred to Debentures A/c)

Sep.30

Debentures Interest A/c

Dr.

4,500

  To  Debentureholders’ A/c

4,050

  To TDS Payable A/c

450

(Interest due)

Sep.30

Debentureholders’ A/c

Dr.

4,050

 TDS Payable A/c

Dr.

450

    To Bank A/c

4,500

(Interest paid)

2016

Mar .31

Debenture Interest A/c

4,500

  To  Debentureholders’ A/c

4,050

  To TDS Payable A/c

450

(Interest due)

Mar.31

Debentureholders’ A/c  

Dr.

4,050

 TDS Payable A/c                                           

Dr.

450

    To Bank A/c

4,500

(Interest paid)

Mar.31

Statement of Profit & Loss A/c                                 

Dr.

9,000

    To Debentures Interest A/c

9,000

(Interest transferred to P&L)