XYZ Ltd issued 5,000 10 % deb of Rs 100 each on Apr 1, 2013 at a discount of 10% - Accountancy - Issue and Redemption of Debentures

Question

XYZ Ltd issued 5,000 10 % deb of Rs 100 each on Apr 1, 2013 at a
discount of 10% Give journal entries for the year ended Mar 31
assuming that the interest is payable TDS is 10%

Nitin Verma · Accepted Answer

Dear Student,

Journal

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

2013

Apr 01
Bank A/c
Dr

4,50,000

Discount on issue of Debentures A/c
Dr

50,000

To 10% Debentures A/c

5,00,000

(Debentures issued at discount)

2014

Mar 31
Debentures Interest A/c
Dr

50,000

To Debentures Holders' A/c

45,000

To TDS Payable A/c

5,000

(Debentures interest due)

Debentures Holders' A/c
Dr

45,000

TDS Payable A/c
Dr

5,000

To Bank A/c

50,000

(Interest paid)

Statement of P & L A/c
Dr

50,000

To Debentures Interest A/c

50,000

(Interest transferred to P&l)

Regards

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2013
Apr.01	Bank A/c	Dr.		4,50,000
	Discount on issue of Debentures A/c	Dr.		50,000
	To 10% Debentures A/c				5,00,000
	(Debentures issued at discount)
2014
Mar.31	Debentures Interest A/c	Dr.		50,000
	To Debentures Holders' A/c				45,000
	To TDS Payable A/c				5,000
	(Debentures interest due)

	Debentures Holders' A/c	Dr.		45,000
	TDS Payable A/c	Dr.		5,000
	To Bank A/c				50,000
	(Interest paid)

	Statement of P & L A/c	Dr.		50,000
	To Debentures Interest A/c				50,000
	(Interest transferred to P&l)

XYZ Ltd issued 5,000 10 % deb of Rs 100 each on Apr 1, 2013 at a discount of 10%. Give journal entries for the year ended Mar 31 assuming that the interest is payable. TDS is 10%.