[CBSE] Q. 48 Issue of Debentures Solution TS Grewal Class 12 (2024-25)

Solution of Question number 48 of the Issue of Debentures Chapter of TS Grewal Book 2024-25 CBSE Board

Mercury Ltd. issued ₹ 10,00,000; 9% Debentures of ₹ 100 each at a discount of 6% on 1st April, 2022. These debentures are to be redeemed equally. Spread over 5 annual instalments. It had balance in Capital Reserve of ₹ 75,000.

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

[Ans.: Dr. Statment of Profit & Loss (Finance Cost) and Cr. Discount on Issue of Debentures A/c by ₹ 60,000.]

Solution:-