[CBSE] Q. 50 Issue of Debentures Solution TS Grewal Class 12 (2024-25)

Solution of Question number 50 of the Issue of Debentures Chapter of TS Grewal Book 2024-25 CBSE Board

Sujata Ltd. invited applications for issuing 50,000, 9% Debentures of ₹ 100 each at a discount of 10% redeemable at par after 5 years. The debentures were fully subscribed and all money was duly received. The company had a balance of ₹ 3,00,000 in Securities Premium which it decided to use for writing off the discount/loss on issue of debentures. It also decided to write off the remaining discount/loss on issue of debentures in the first year.

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

Solution:-