Discount on redemption of debenture is shown
WebRedemption of debentures refers to the repayment of these debentures by the company to the debenture holders. So the company will discharge its liability and remove it from the … WebDebenture issued at a discount. Debentures issued at Premium. Debentures are said to be issued at a premium when the amount collected for it, is greater than the nominal value …
Discount on redemption of debenture is shown
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WebNov 23, 2024 · Godrej Ltd. has 20,000; 7% Debentures of ₹ 100 each due for redemption on 31st August, 2024. There is a balance of ₹ 3,50,000 in Debentures Redemption Reserve Account as on 31st March,2015. Web12.7.1 Trustees to the debenture / bond issue shall be vested with the requisite powers for protecting the interest of bond / debenture holders including a right to appoint a nominee director on the Board of the DFI in consultation with other institutional debentureholders in the event of default and such events of defaults should be specified ...
WebYou are required to pass journal entries for the issue of following debentures: (a) 120 10% Rs. 1,000 Debentures are issued at 5% discount and are repayable at par. ADVERTISEMENTS: (b) Another 150 7% Rs. 1,000 Debentures are issued at 5% discount and repayable at 10% premium. (c) Further 80 9% Rs. 1,000 Debentures are issued at … WebIssue and Redemption of Debentures Important Extra Questions Short Answer Type Question 1. Garvit Ltd. invited applications for issuing 3,000, 11% Debentures of₹ 100 each at a discount of 6%. The full amount was payable on application. Applications were received for 3,600 debentures.
WebAug 30, 2024 · Issue & Redemption of Debentures – Corporate and Management Accounting MCQs Question 1. When face value of debentures is more than issue price … Redemption of debentures refers to payment of the amount of debentures by the enterprise. When debentures are reclaimed, liability on account of debentures is being discharged. To put it in other words, the … See more
WebNov 26, 2024 · Cases of issue of Debentures from the point of view of Redemption are six in numbers because Debentures can be issued at different prices to the public i.e. at par, …
chad\\u0027s mobile auto mechanics llcWebNov 20, 2024 · We have shown the Debenture issued at par, at a discount and at a premium in the following single journal format and treatment of discount and premium are shown with grey colour so if in the question there is discount then u can add discount treatment and do not write a premium treatment and vice versa. Note: hanshin bmw bmw premium selectionWebJan 25, 2024 · The conditions of redemption are clearly stated at the time of issue of debenture in the prospectus. Debentures can be redeemed at par, premium or discount … hanshin awaji earthquakeWebDiscount on issue of debentures is treated as a capital loss and put under “Miscellaneous Expenses” on the asset side of the balance sheet until it can be written off. Then during the life of the debentures, such discount amount is written off by debiting it … chad\u0027s oil change bloomington inWebAug 1, 2024 · At Premium: In this case, the debentures’ redemption value is greater than their face value. For example, if the face value of a debenture is Rs. 100, the … hanshin bmw bmw premium selection 西宮WebDebenture issued at a discount Debentures Issued at Discount When debentures are issued by the company at a price less than its nominal value (face value) it is said to be … chad\u0027s paint and body groesbeck txWebThe journal entry for the issuance will show a ANSWER: A a.debit to Discount on Bonds Payable for $80,000 b.credit to Cash for $1,920,000 c.debit to Cash for $2,000,000 d.credit to Bonds Payable for $1,920,000 WORK: 2,000,000 - (2,000,000x.96)=2,000,000 - 1,920,000=80,000 hanshin arena shopping plaza