CBSE 2025, Set 2

Question

On 1st April, 2023, YK Ltd. issued 20,000, 9% debentures of ₹100 each at a premium of 5%, redeemable after five years at par. The company closes its books on 31st March every year. Interest on debentures is payable half yearly on 30th September and 31st March every year.
Pass necessary journal entries in the books of the company for issue of debentures and payment of interest for the year ending 31st March, 2024.

Edvaya · Accepted Answer

The correct answer is Subjective. **Books of YK Ltd. - Journal** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | 2023 Apr 1 | Bank A/c Dr.     To Debenture Application and Allotment A/c (Application money received) | | 21,00,000 | 21,00,000 | | 2023 Apr 1 | Debenture Application and Allotment A/c Dr.     To 9% Debentures A/c     To Securities Premium A/c (Debentures issued at premium) | | 21,00,000 | 20,00,000 1,00,000 | | 2023 Sep 30 | Debenture Interest A/c Dr.     To Debentureholders A/c (Interest due for six months: 20L × 9% × 6/12) | | 90,000 | 90,000 | | 2023 Sep 30 | Debentureholders A/c Dr.     To Bank A/c (Payment of interest) | | 90,000 | 90,000 | | 2024 Mar 31 | Debenture Interest A/c Dr.     To Debentureholders A/c (Interest due for next six months) | | 90,000 | 90,000 | | 2024 Mar 31 | Debentureholders A/c Dr.     To Bank A/c (Payment of interest) | | 90,000 | 90,000 |

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Accountancy > Accounting For Companies > Issue Of Debentures

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