Ananya Ltd a company,decided to issue 100000,9%Debentures on 1st April 2008,with face value of each debenture being Rs100 at a - Accountancy - Issue and Redemption of Debentures

Question

Ananya Ltd a company,decided to issue 100000,9%Debentures on 1st
April 2008,with face value of each debenture being Rs100 at a
discount of 5% These Debentures were redeemed in four instalments
starting from third year,which were as follows:
Year Amount(Rs)
III 1000000
IV 2000000
V 3000000
VI 4000000
Please provide journal entries for issue and redemption of
debentures from April1st 2008 onwards

Neha Arora · Accepted Answer

Dear Student,

Journal

Date
Particulars
L
F
Debit
Amount
(Rs)
Credit
Amount
(Rs)

2008

Apr
01
Bank
A/c
Dr

95,00,000

To Debenture Application and Allotment
A/c

95,00,000

(1,00,000, 9% Debentures issued at a discount
of 5%)

Apr
01
Debenture Application and Allotment
A/c
Dr

95,00,000

Loss on Issue of Debentures
A/c
Dr

5,00,000

To 7% Debentures
A/c

1,00,00,000

(1,00,000, 9% Debentures issued at a discount
of 5%)

2011

Mar
31
9% Debentures
A/c
Dr

10,00,000

To Debentureholders’
A/c

10,00,000

(10,000, 9% Debentures due for
payment)

Mar
31
Debentureholders’
A/c
Dr

10,00,000

To Bank
A/c

10,00,000

(10,000, 9% Debentures
paid)

2012

Mar
31
9% Debentures
A/c
Dr

20,00,000

To Debentureholders’
A/c

20,00,000

(20,000, 9% Debentures due for
payment)

Mar
31
Debentureholders’
A/c
Dr

20,00,000

To Bank
A/c

20,00,000

(20,000, 9% Debentures
paid)

2013

Mar
31
9% Debentures
A/c
Dr

30,00,000

To Debentureholders’
A/c

30,00,000

(30,000, 9% Debentures due for
payment)

Mar
31
Debentureholders’
A/c
Dr

30,00,000

To Bank
A/c

30,00,000

(30,000, 9% Debentures
paid)

2014

Mar
31
9% Debentures
A/c
Dr

40,00,000

To Debentureholders’
A/c

40,00,000

(40,000, 9% Debentures due for
payment)

Mar
31
Debentureholders’
A/c
Dr

40,00,000

To Bank
A/c

40,00,000

(40,000, 9% Debentures
paid)

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2008
Apr 01	Bank A/c	Dr.		95,00,000
	To Debenture Application and Allotment A/c				95,00,000
	(1,00,000, 9% Debentures issued at a discount of 5%)

Apr 01	Debenture Application and Allotment A/c	Dr.		95,00,000
	Loss on Issue of Debentures A/c	Dr.		5,00,000
	To 7% Debentures A/c				1,00,00,000
	(1,00,000, 9% Debentures issued at a discount of 5%)

2011
Mar 31	9% Debentures A/c	Dr.		10,00,000
	To Debentureholders’ A/c				10,00,000
	(10,000, 9% Debentures due for payment)

Mar 31	Debentureholders’ A/c	Dr.		10,00,000
	To Bank A/c				10,00,000
	(10,000, 9% Debentures paid)

2012
Mar 31	9% Debentures A/c	Dr.		20,00,000
	To Debentureholders’ A/c				20,00,000
	(20,000, 9% Debentures due for payment)

Mar 31	Debentureholders’ A/c	Dr.		20,00,000
	To Bank A/c				20,00,000
	(20,000, 9% Debentures paid)

2013
Mar 31	9% Debentures A/c	Dr.		30,00,000
	To Debentureholders’ A/c				30,00,000
	(30,000, 9% Debentures due for payment)

Mar 31	Debentureholders’ A/c	Dr.		30,00,000
	To Bank A/c				30,00,000
	(30,000, 9% Debentures paid)

2014
Mar 31	9% Debentures A/c	Dr.		40,00,000
	To Debentureholders’ A/c				40,00,000
	(40,000, 9% Debentures due for payment)

Mar 31	Debentureholders’ A/c	Dr.		40,00,000
	To Bank A/c				40,00,000
	(40,000, 9% Debentures paid)