Plz help
8. Give journal entries for issue of debentures and also prepare balance sheet for :
Issued 1,000 7% Debentures at 5% premium, redeemable at a premium of 8%.
Dear Student,
| Journal | |||||
| Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
| Bank A/c | Dr. | 1,05,000 | |||
| To Debenture Application and Allotment A/c | 1,05,000 | ||||
| (1,000, 7% Debentures issued at a premium of 5%) | |||||
| Debenture Application and Allotment A/c | Dr. | 1,05,000 | |||
| Loss on Issue of Debentures A/c | Dr. | 8,000 | |||
| To 7% Debentures A/c | 1,00,000 | ||||
| To Premium on Redemption of Debentures A/c | 8,000 | ||||
| To Securities Premium A/c | 5,000 | ||||
| (1,000, 7% Debentures issued at a premium of 5%, redeemable at a premium of 8%) | |||||
| Extract of Balance Sheet | ||
| Particulars | Note No. |
Amount (Rs) |
|
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|
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|
1 | 5,000 |
|
||
|
2 | 1,00,000 |
|
3 | 8,000 |
| Total | 1,13,000 | |
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|
4 | 8,00,000 |
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|
5 | 1,05,000 |
| Total | 1,13,000 | |
| NOTES TO ACCOUNTS | |||
| Note No. | Particulars | Amount (Rs) |
|
| 1 | Reserves and Surplus | ||
| Securities Premium | 5,000 | ||
| 2 | Long Term Borrowings | ||
| 7% Debentures | 1,00,000 | ||
| 3 | Other Long Term Liabilities | ||
| Premium on Redemption of Debentures | 8,000 | ||
| 4 | Other Non-Current Assets | ||
| Loss on Issue of Debentures | 8,000 | ||
| 5 | Cash and Cash Equivalents | ||
| Bank | 1,05,000 | ||