debenture issue and redemption

debenture issue and redemption

1. ISSUE AND REDEMPTION OF
DEBENTURES

2. (i)Issued at par and redeemable at par
(ii)Issued at premium and redeemable at par
(iii)Issued at discount and redeemable at par
(iv)Issued at par and redeemable at a premium
(v)Issued at a discount and redeemable at a premium
(vi)Issued at a premium and redeemable at a premium
Issue and Redemption of Debentures

3. 1. ISSUE AT PAR AND REDEEMABLE AT
PAR
Bank A/c Dr
To Debentures A/c

4. ISSUED AT PREMIUM AND REDEEMABLE
AT PAR
Bank A/c Dr (Face Value + Premium)
To Debentures A/c (face Value)
To Security Premium A/c (Premium)

5. ISSUED AT DISCOUNT AND REDEEMABLE
AT PAR
Bank A/c Dr (Amount received)
Discount on issue of debenture A/c Dr(Discount)
To Debentures A/c (face value)

6. ISSUED AT PAR AND REDEEMABLE AT A
PREMIUM
Bank A/c Dr (Amount received)
Loss on issue of debenture A/c Dr(Premium on redemption))
To Debentures A/c (face value)
To Premium on Redemption (Premium Payable on redemption)

7. ISSUED AT A DISCOUNT AND
REDEEMABLE AT A PREMIUM
Bank A/c Dr (Amount received)
Loss on issue of debenture A/c Dr(Discount on issue+Premiumon redemption))
To Debentures A/c (face value)
To Premium on Redemption (Premium Payable on redemption)

8. ISSUED AT A PREMIUM AND REDEEMABLE
AT A PREMIUM
Bank A/c Dr (Amount received)
Loss on issue of debenture A/c Dr(Premium on redemption))
To Debentures A/c (face value)
To Security Premium A/c (Premium on issue)
To Premium on Redemption (Premium Payable on redemption)

9. EXAMPLE
Give Journal Entries for the following:
1.Issue of Rs.10,000, 9% debentures of Rs. 100 each and redeemable at par.
2.Issue of Rs.10,000, 9% debentures of Rs. 100 each at premium of 5% but
redeemable at par.
3.Issue of Rs.10,000, 9% debentures of Rs. 100 each at discount of 5%
repayable at par.
4.Issue of Rs.10,000, 9% debentures of Rs. 100 each at par but repayable at
a premium of 5%.
5.Issue of Rs.10,000, 9% debentures of Rs. 100 each at discount of 5% but
redeemable at premium of 5%.
6.Issue of Rs.10,000, 9% debentures of Rs. 100 each at premium of 5% and
redeemable at premium of 5%.

10. ISSUE OF 1000, 9% DEBENTURES OF RS.
100 EACH AND REDEEMABLE AT PAR.
Bank A/c Dr. 100000
To 9% Debenture100000

11. ISSUE OF 1000, 9% DEBENTURES OF RS. 100
EACH AT PREMIUM OF 5% BUT REDEEMABLE
AT PAR.
Bank A/c Dr105000
To 9% Debentures100000
To Security Premium5000

12. ISSUE OF 1000, 9% DEBENTURES OF RS. 100
EACH AT DISCOUNT OF 5% REPAYABLE AT
PAR.
Bank A/c Dr 95000
Discount on issue of deb Dr 5000
To 9% Debenture 100000

13. ISSUE OF 1000, 9% DEBENTURES OF RS. 100
EACH AT PAR BUT REPAYABLE AT A PREMIUM
OF 5%.
Bank A/c Dr100000
Discount on issue A/c Dr5000
To 9% Debenture 100000
To Premium on redemption 5000

14. ISSUE OF 1000, 9% DEBENTURES OF RS. 100
EACH AT DISCOUNT OF 5% BUT
REDEEMABLE AT PREMIUM OF 5%.
Bank A/c Dr 95000
Loss on Issue od deb Dr. 10000 (5000+5000)
To 9% Debentures A/c 100000
To Premium on redemption 5000

15. ISSUE OF 1000, 9% DEBENTURES OF RS. 100
EACH AT PREMIUM OF 5% AND REDEEMABLE
AT PREMIUM OF 5%.
Bank A/c Dr 105000
Loss on issue Dr 5000
To 9% Debenture 100000
To Premium on redemption5000
To Security Premium A/c5000

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