Q. on 31st march2007 mohini ltd. , issued 4000-7% debnture of rs. 500 each at rs. 475 each. debentureholders had an option to convert their holding into 8% pref. share of rs. 100 each at a premium of rs. 25 per share. on 31st march 2008 one year's interest had accrued on these deb. and remained unpaid.
a holder of 100 deb. notified his intention to convert his holding into 8 % pref. shares.
prepare journal entries and Balance sheet.
i made only two journal entries -
1. debenture interest a/c dr. 1,40,000
To deb. int. outstanding 1,40,000
2. 7% deb. a/c Dr.50000
To discount on issue of deb. a/c 2500
To 8% pref. share capital a/c38000
To securities premium a/c9500
i want to know that will i have to pass journal entry for issuing debenture also as it was issued on 31st march 2007?
and i want to know where i will have to show discount on issue of deb. as its CR.
plzzzzzzzzzzzzzzzzzzzzzzz tell me - it's urgent..this Q. is from test paper3/2008 of company a/c and cost and mgmt accounting of CS executive
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