a. Journal entries for the issue of debentures:
Issues 4000, 12% debentures of Rs. 100 each at Rs 100 and redeemable at Rs 100.
Debit: Cash/Bank Account (4000 x 100) = 400,000
Credit: Debentures Account (4000 x 100) = 400,000
Issued 4000, 12% debentures of Rs. 100 each at Rs 100 and redeemable at Rs 90.
Debit: Cash/Bank Account (4000 x 100) = 400,000
Credit: Debentures Account (4000 x 90) = 360,000
Credit: Discount on Issue of Debentures Account (4000 x 10) = 40,000
Issued 4000, 12% debentures of Rs. 100 each at Rs 100 and redeemable at Rs 110.
Debit: Cash/Bank Account (4000 x 100) = 400,000
Credit: Debentures Account (4000 x 110) = 440,000
Credit: Premium on Issue of Debentures Account (4000 x 10) = 40,000
Issued 4000, 12% debentures of 100 each at Rs 110 and redeemable at Rs 100.
Debit: Cash/Bank Account (4000 x 110) = 440,000
Credit: Debentures Account (4000 x 100) = 400,000
Credit: Loss on Issue of Debentures Account (4000 x 10) = 40,000
Issued 4000, 12% debentures of 100 each at Rs 110 and redeemable at Rs 90.
Debit: Cash/Bank Account (4000 x 110) = 440,000
Credit: Debentures Account (4000 x 90) = 360,000
Credit: Discount on Issue of Debentures Account (4000 x 20) = 80,000
Issued 4000, 12% debentures of 100 each at Rs 110 and redeemable at Rs 110.
Debit: Cash/Bank Account (4000 x 110) = 440,000
Credit: Debentures Account (4000 x 110) = 440,000
Issued 4000, 12% debentures of Rs.100 each at Rs 90 and redeemable at Rs 100.
Debit: Cash/Bank Account (4000 x 90) = 360,000
Credit: Debentures Account (4000 x 100) = 400,000
Credit: Discount on Issue of Debentures Account (4000 x 10) = 40,000
Issued 4000, 12% debentures of Rs.100 each at Rs 90 redeemable at Rs 105.
Debit: Cash/Bank Account (4000 x 90) = 360,000
Credit: Debentures Account (4000 x 105) = 420,000
Credit: Premium on Issue of Debentures Account (4000 x 15) = 60,000
b. for the redemption of debentures:
Redemption of debentures issued at Rs. 100 and redeemable at Rs. 100:
Debenture Redemption A/C Dr. 400,000
To Debentureholders A/C 400,000
(Being the debentures of Rs. 100 each redeemed at par)
Redemption of debentures issued at Rs. 100 and redeemable at Rs. 90:
Debenture Redemption A/C Dr. 360,000
Loss on Redemption A/C Dr. 40,000
To Debentureholders A/C 400,000
(Being the debentures of Rs. 100 each redeemed at a discount of Rs. 10)
Redemption of debentures issued at Rs. 100 and redeemable at Rs. 110:
Debenture Redemption A/C Dr. 440,000
Gain on Redemption A/C Dr. 40,000
To Debentureholders A/C 400,000
(Being the debentures of Rs. 100 each redeemed at a premium of Rs. 10)
Redemption of debentures issued at Rs. 110 and redeemable at Rs. 100:
Debenture Redemption A/C Dr. 400,000
To Debentureholders A/C 400,000
(Being the debentures of Rs. 110 each redeemed at par)
Redemption of debentures issued at Rs. 110 and redeemable at Rs. 90:
Debenture Redemption A/C Dr. 360,000
Loss on Redemption A/C Dr. 40,000
To Debentureholders A/C 400,000
(Being the debentures of Rs. 110 each redeemed at a discount of Rs. 20)
Redemption of debentures issued at Rs. 110 and redeemable at Rs. 110:
Debenture Redemption A/C Dr. 440,000
To Debentureholders A/C 400,000
Gain on Redemption A/C Cr. 40,000
(Being the debentures of Rs. 110 each redeemed at par with a premium of Rs. 10)
Redemption of debentures issued at Rs. 90 and redeemable at Rs. 100:
Debenture Redemption A/C Dr. 400,000
Loss on Redemption A/C Dr. 10,000
To Debentureholders A/C 390,000
To Securities Premium Reserve A/C 20,000
(Being the debentures of Rs. 90 each redeemed at a discount of Rs. 10 and Securities Premium Reserve credited with Rs. 2.50 per debenture redeemed)
Redemption of debentures issued at Rs. 90 and redeemable at Rs. 105:
Debenture Redemption A/C Dr. 420,000
Loss on Redemption A/C Dr. 30,000
To Debentureholders A/C 390,000
To Securities Premium Reserve A/C 30,000
(Being the debentures of Rs. 90 each redeemed at a discount of Rs. 15 and Securities Premium Reserve credited with Rs. 7.50 per debent