Accounts
This query is : Resolved
16 July 2012
Z ltd purchased an asset for 5 lac by issuing debenture of Rs 100 each @ discount of 20%.Wat is the amount to be credited to debenture a/c.and its journal entry
16 July 2012
Asset Dr. 4 lacs
Discount on issue of Deb Dr. 1 lac
To Debentures Cr. 5 lacs
Then follow regular entries of depreciation for FA and amortise the discount over the term of debentures.
Discount on issue of Deb Dr. 1 lac
To Debentures Cr. 5 lacs
Then follow regular entries of depreciation for FA and amortise the discount over the term of debentures.
16 July 2012
ASSET DR. -500000
DIS. ON ISSUE OF DEB. DR-125000
TO DEBENTURE 625000
DIS. ON ISSUE OF DEB. DR-125000
TO DEBENTURE 625000
Message likes :
1 times
16 July 2012
If the debentures are issued at 20% discount, then its present value is 4 lacs.
It means that it is a longer duartion credit transaction and the discount refers to the interest to be paid.
My understanding of the problem reads that at the end, the company will pay only 5 lacs and not 6.25 lacs.
If not, then it may warrant additional information.
It means that it is a longer duartion credit transaction and the discount refers to the interest to be paid.
My understanding of the problem reads that at the end, the company will pay only 5 lacs and not 6.25 lacs.
If not, then it may warrant additional information.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Sales return eway bill
- TAN for Partnership
- GST ON DAMAGED GOODS
- Last year TDS Claim
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- Suggestions required for income tax filing-software (FY 2025-26)
- E way bill for tractors
- Free lancer income
- Long Term Service award taxability in hands of company
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
