Chapter - 08 (Question - 45 Accounting for debentures : issue)

 

Question - 45

Pass the necessary journal entries in the books of the company in the following case:

1. 1,000; 8% debentures of Rs. 100 each have been issued at par and are redeemable at 5% premium.
2. 1,000;  8% debentures of Rs. 100 each have been issued at 5% discount and are redeemable at 10% premium.

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