[CBSE] Q. 47 Issue of Debentures Solution TS Grewal Class 12 (2024-25)

Solution of Question number 47 of the Issue of Debentures Chapter of TS Grewal Book 2024-25 CBSE Board

Kitply Ltd. issued ₹ 2,00,000, 10% Debentures at a discount of 5%. The terms of issue provide the repayment at the end of 4 years. Kitply Ltd. has a balance of ₹ 5,00,000 in Securities Premium.

Pass the Journal entries for issue of debentures and writing off the discount.

[Hint: Dr. Securities Premium A/c and Cr. Discount on issue of Debentures A/c by ₹ 10,000.]

Solution:-