Decent Trading Company was in need of funds in order to join a venture with some...
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Decent Trading Company was in need of funds in order to join a venture with some other organization. Accordingly the Company issued on 01 July, 2020 10% 2,000 Bonds of Rs. 500 each at par value with maturity of 05 years. The interest is payable after each 06 months period. Required: Record these bonds in accounting books of the company for:- a) Issuance of bonds b) Periodic payment of interest on bonds. c) Presentation of bonds on the balance sheet as at 30-06-2021. Redemption of bonds at maturity. d) Decent Trading Company was in need of funds in order to join a venture with some other organization. Accordingly the Company issued on 01 July, 2020 10% 2,000 Bonds of Rs. 500 each at par value with maturity of 05 years. The interest is payable after each 06 months period. Required: Record these bonds in accounting books of the company for:- a) Issuance of bonds b) Periodic payment of interest on bonds. c) Presentation of bonds on the balance sheet as at 30-06-2021. Redemption of bonds at maturity. d)
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a Journal entry to record the issuance of Bond Date Explanation Debit Credit 1st July Cash Bond paya... View the full answer
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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