Pass necessary journal entries when Rs 70,000 : 12%debentures of Rs 100 each issued at premium of 5% redeemable at Rs 110.

Dear student,

Bank A/c  (700*105)         Dr. 73500
To debenture application & allotment                73500
(being Rs. 70000 debentures of Rs. 100 each issued @ 105)

D​ebenture application & allotment   A/c            Dr.   73500
Loss on issue of debentures A/c                          Dr.     7000
To 12% debentures A/c                                                                  70000
To  securities premium reserve  A/c                                                 3500
To  premium on redemption of debenture    A/c                               7000
( being application amount transferred to debenture and securities premium account)

Regards