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Regards
Journal in the books of the company | ||||
Date | Particulars | Debit | Credit | |
2013 | ||||
01-Apr | Bank A/c (10,000 x 95) | Dr. | 950,000 | |
Loss on issue of Debenture A/c (10,000 x 5) | Dr. | 50,000 | ||
To 12% Debenture A/c (10,000 x 100) | 1,000,000 | |||
(Being Debentures issued at 5% Discount) | ||||
Loss on issue of Debenture A/c (10,000 x 2) | Dr. | 20,000 | ||
To Premium on Redemption of Debenture A/c | 20,000 | |||
(Being Debentures issued at 5% discount to be redeemed at 2% Premium) | ||||
2018 | ||||
01-Aug | 12% Debentures A/c | Dr. | 1,000,000 | |
Premium on Redemption of Debenture A/c | Dr. | 20,000 | ||
To Statement of Profit and Loss A/c (Loss Written Off) | 50,000 | |||
To Loss on Issue A/c (Loss not written off) | 20,000 | |||
To Debenture Holders A/c | 950,000 | |||
(Being Debentures due to be converted into equity shares) | ||||
Debenture Holders A/c | Dr. | 950,000 | ||
To Equity Share Capital A/c (38,000 x 20) | 760,000 | |||
To Securities Premium A/c (38,000 x 5) | 190,000 | |||
(Being 38,000 share (9,50,000 / 25) are issued at Rs 25/- per share for conversion of Rs 9,50,000 due to debentureholders) |
Regards