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Master Problem 2

Pass the necessary journal entries and show how they would appear in the balance sheet for each of the following transactions:

  1. A Ltd. issued 10,000, 10 per cent debentures of ₹ 100 each repayable at par.
  2. B Ltd. issued 20,000, 10 per cent debentures of ₹ 100 each at a discount of 10 per cent, repayable at the end of 3 years.
  3. C Ltd. issued 30,000, 10 per cent debentures of ₹ 100 each at a premium of 5 per cent, redeemable at par.
  4. D Ltd. issued 40,000, 10 per cent debentures of ₹ 100 each at par, redeemable at ₹ 110.
  5. E Ltd. issued 50,000, 10 per cent debentures of ₹ 100 each at a discount of 5 per cent, redeemable at a premium of 10 per cent.
  6. F Ltd. issued 60,000, 10 per cent debentures of ₹ 100 each at a premium of 5 per cent, redeemable at a premium of 10 per cent.
  7. G Ltd. issued 70,000, 10 per cent debentures of ₹ 100 each at a discount of 5 per cent, redeemable at a discount of 5 per cent.

Solution:

 

In the Books of A Ltd.
 













 

Note: Discount on redemption is an anticipated future profit and hence not recorded at the time of issue.





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