banner_ad

Entry for own debentures sold

A/c entries 3609 views 4 replies

Could anyone please tell the entry for below transaction?

(iii)Own debentures of Rs. 80,000 were sold at Rs. 98 cum-interest and remaining own debentures were cancelled.

Here is the full question.

Replies (4)

"Sorry, I am not a featured member."

For featured members contact....

https://www.caclubindia.com/catalogue/featured.asp

Coupon+face value- market prine now/face value gives the yield of profit

Coupon+market price - face value/face value gives the loss on yield.

I am considering that your investing in debentures. 

Debentures are usually a liability and and measured at amortised cost. If you have sold your debt which no one does, it's a complex treatment but solution exists.

So are your trading or into debt.

If your trading

Dr. Bank

Cr. Gain

Cr. Investment account. 

 

I'm also not aware of debt could be sold. Can it be like securitied like mortgages

 

Thisa biggest mistake in MBA formula called holding period return. No one knows the true gain in this this because it's calculated the same for ten years as well.

 

If your investment is indexed based on carrying amount, it's safer. So did you buy debentures like gave a loan and sold it off to someone else? Or fvpl investment.

Entry for Investment Sold

Bank a/c (800*98) Dr  78,400 

        To Investment in Own debentures a/c (800*96)   76,800 

         To Capital Reduction a/c                                       1,600

Entry for Cancellation of debentures

12% Debentures a/c Dr 1,20,000

        To Investment in Own debentures a/c   1,15,200

         To Capital Reduction a/c                           4,800


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details
Company
09 May 2026
Audit Manager

Kanna and Associates

Coimbatore

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details