Entry for own debentures sold

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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details