Q. 43 DK Goel Issue of Debentures Solutions Class 12 CBSE (2024-25)

the solution of question number 43 of Issue of debentures chapter 7 of DK Goel Class 12 CBSE (2024-25)

Z Ltd. issued 20,000, 12% Debentures of ₹ 100 each. Give journal entries if the Debentures are (1) issued at par, (2) issued at a discount of 10%, and (3) issued at a premium of 10% (redemption being in all these cases at par).

Also show the entries which will be made if the Debentures are repayable at a premium of 5% but are issued (a) at par, and (b) at a discount of 10%.

Solution:-