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A Ltd. issued 20,000, 12% debentures of 10 each at a premium of 20% redeemable at a premiumof 10%. |
Answer» ## A LTD.issued 20000,12 % debentures of 10 each at a premium of 20% redeemable at a premium of 10% .##At the TIME of issue of debentures:-@ Bank a/c Dr. 240000To 12% debentures application and ALLOTMENT a/c 240000( amount received ) @ 12% debentures APPLICATION and allotment a/c Dr. 240000LOSS on issue of debenture a/c Dr. 20000To 12 % debentures a/c 200000To security premium a/c. 40000To premium on redemption a/c 20000
( amount transferred to debenture a/c) ##At the time of redemption of debentures :-@12% debenture a/c. Dr. 200000premium on redemption a/c. Dr. 20000To debentureholder a/c 220000
( payment due) @ debentureholder a/c Dr. 220000To bank a/c 220000( payment made) |
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