Page 215 - ISCDEBK-12

Joint Stock Company—Issue of Debentures 8.9
(iv) Daniel Ltd. issued ` 50,00,000; 12% Debentures of ` 100 each at par redeemable at
the end of 10 years at 105%.
(v) Emily Ltd. issued ` 60,00,000; 12% Debentures of ` 100 each at a discount of 5%
repayable at a premium of 10% at the end of 5 years.
(vi) Feather Ltd. issued ` 70,00,000; 12% Debentures of ` 100 each at a premium of 5%
redeemable at 110%.
Solution:

(i) JOURNAL OF DHONI LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 20,00,000
To Debentures Application and Allotment A/c 20,00,000
(Being the debentures application money received)
Debentures Application and Allotment A/c ...Dr. 20,00,000
To 10% Debentures A/c 20,00,000
(Being 20,000; 10% Debentures of ` 100 each issued at par)

(ii) JOURNAL OF STOKES LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 28,50,000
To Debentures Application and Allotment A/c 28,50,000
(Being the debentures application money received)
Debentures Application and Allotment A/c ...Dr. 28,50,000
Discount on Issue of Debentures A/c ...Dr. 1,50,000
To 10% Debentures A/c 30,00,000
(Being the issue of 30,000; 10% Debentures of ` 100 each at a
discount of 5%)
(iii) JOURNAL OF CORNEY LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 42,00,000
To Debentures Application and Allotment A/c 42,00,000
(Being the debentures application money received)
Debentures Application and Allotment A/c ...Dr. 42,00,000
To 10% Debentures A/c 40,00,000
To Securities Premium Reserve A/c 2,00,000
(Being the issue of 40,000; 10% Debentures of ` 100 each at a premium of 5%)

(iv) JOURNAL OF DANIEL LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 50,00,000
To Debentures Application and Allotment A/c 50,00,000
(Being the debentures application money received)
Debentures Application and Allotment A/c ...Dr. 50,00,000
Loss on Issue of Debentures A/c ...Dr. 2,50,000
To 12% Debentures A/c 50,00,000
To Premium on Redemption of Debentures A/c 2,50,000
(Being the issue of 50,000; 12% Debentures of ` 100 each at par redeemable at 105%)