f purchased machinery worth 400000 ... and the consideration was paid by issuing 10 % debentures worth 100 each with discount of 20 % .. the amount to be credited to debentures account is ??
it should be 400000 lac right ?
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Debentures
Replies (13)
Machinery a/c Dr. 320,000
To Debenture application and allotment a/c 320,000
Debenture Applictn & Allotmnt a/c Dr. 320,000
Discount on issue of debentures a/c Dr. 80,000
To 10% Debentures a/c 400,000
Machinery A/c___________________________________Dr. 400000
Discount os Issue of Debentures A/c_(500000*20%)____ Dr. 100000
To 10% Debentures A/c (400000*100/80) 500000
i made a mistake there
Machinery a/c Dr. 400,000 To Debenture application and allotment a/c 400,000 Debenture Applictn & Allotmnt a/c Dr. 400,000
Discount on issue of debentures a/c Dr. 100,000
To 10% Debentures a/c 500,000
u can make a one entry like me or dual entry like joseph
amount of debentuer = 100-20%of100 =80
no. of 10 % debentures issue = 400000/80
= 5000
| Originally posted by : Rajnikant Vadigoppula | ||
 |
Machinery A/c___________________________________Dr. 400000 Discount os Issue of Debentures A/c_(500000*20%)____ Dr. 100000 To 10% Debentures A/c (400000*100/80) 500000 |
 |
this is right
|
Machinery A/c___________________________________Dr. 400000 Discount os Issue of Debentures A/c_(500000*20%)____ Dr. 100000 To 10% Debentures A/c (400000*100/80) 500000 |
||
This combined entry is perfect.
| Originally posted by : Rajnikant Vadigoppula | ||
|
|
Machinery A/c___________________________________Dr. 400000 Discount oN Issue of Debentures A/c_(500000*20%)____ Dr. 100000 To 10% Debentures A/c (400000*100/80) 500000 |
|
thanx friends
Machinery Account .......Dr 400000
Discount on debentures...Dr 100000
10% debenture...............Cr 500000
its a right Accounting treatment
THE DEBENTURES SHOULD BE CREDITED WITH 5LACS AS AMOUNT PAYABLE=COST OF MACHINERY (4,00,000/-) WHICH IS 80%. (20% DISCOUNT).
1) Machinery taken over
Machinery A/c Dr. 4,00,000
To Vendor A/c 4,00,000
2) Issue of Debenture for consideration
Vendor A/c Dr. 4,00,000
Discount on Issure of Debentures A/c (5,000x20) Dr. 1,00,000
To 10% Debentures A/c (5,000x 100) 5,00,000
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