A company issued debentures of the face value of 1,00,000 at a discount of 6%. The debentures

Question:

A company issued debentures of the face value of ₹1,00,000 at a discount of 6%. The debentures were repayable by annual drawings of ₹20,000. How would you deal with the discount on debentures?

Show the discount account in the company’s ledger for the period of duration of debentures.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Corporate Accounting

ISBN: 9789353160739

1st Edition

Authors: Anita Raman, P. Radhika

See More Books

Question Posted: Aug 31, 2023 12:10 PM

See More Questions

Deepak Fertilizers and Petrochemicals Corporation Limited (DFPCL) is part of the CK Mehta business group. It is a multi-product portfolio company consisting of chemicals, petrochemicals, fertilizers...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Consider how the Claims in our Debate Cases are the Messages we as Senders Encode to the Opposition Team / Receivers. When writing and litigating / presenting your Debate Case consider ways to...
Hongtao is single and has a gross income of $89,000. His allowable deductions for adjusted gross income are $4,200, and his itemized deductions are $12,300. a. What is Hongtao's taxable income and...
A popular theory for managing risk to the firm that arises out of its management of working capital (that is, current assets and current liabilities) involves following some-thing called the...
Youre considering an investment in Croatia that you expect will produce a 9 percent return next year, and you expect that your real rate of return on this investment will be 7 percent. What do you...
The transactions that follow took place at the Cedar Hill Sports Arena during September 2016. This firm has indoor courts where customers can play tennis for a fee. It also rents equipment and offers...
A multinational corporation is accused of environmental pollution and human rights violations in a foreign country where it operates. What legal challenges arise in holding the corporation...
Premium on issue of debentures can be used to write off the ______ on issue of debentures.
Write short notes as: (a). Debenture redemption reserve (b). Partly convertible debentures (c). Open Market buying method of redemption (d). Own Debentures acquired as Investments.
You are standing on a train platform watching a high-speed train pass by. A light inside one of the train cars is turned on and then a little later it is turned off. (a) Who can measure the proper...
How does the profit maximization condition imply that business investment will move inversely with the level of interest rates?
How does a reliable, efficient, and lowcost payment system affect overall economic wellbeing?
What is the safety net provided to the commercial banking system? How might this be related to moral hazard? In this regard, what is the role of regulatory policy?
Explain the relationships among corporate shareholders, boards of directors, and managers? Why has such a system of governance proven to be essential for efficiency?
How does a reliable, efficient payment system affect the level of economic wellbeing in the United States?
What is the purpose of serial repayments and sinking funds?
Create a data model for one of the processes in the end-of-chapter Exercises for Chapter 4. Explain how you would balance the data model and process model.
Gamma Ltd. issued 25,00,000 equity shares of 10 each at par. The issue was fully underwritten by Alpha ---- 40%; Beta ---- 40%; Zeta ---- 20%. Applications were received for 24,00,000 equity shares....
M Ltd has authorised capital of 50,00,000 divided into 1,00,000 equity shares of 50 each. The company issued for subscription 50,000 shares at a premium of 10 each. The entire issue was...
Super India Ltd issued 75,000 equity shares. The whole of the issue was underwritten as follows : A ---- 50%; B ---- 25%; C ---- 25%. Applications for 60,000 shares were received in all, out of which...
Assume the following: Beginning finished goods inventory Ending finished goods inventory Cost of goods manufactured What is the unadjusted cost of goods sold? $ 10,000 $ 9,500 $ 52,000
On November 1, 2022, Kingbird, Inc. had the following account balances. The company uses the perpetual inventory method. Debit Credit Cash $10,800 Accumulated Depreciation-Equipment $1,200 Accounts...
Statement of Financial Position as at 31 December: Assets Non-current assets Inventories Accounts receivable Cash Equity and liabilities Ordinary share capital Retained earnings Long-term loan...

A company issued debentures of the face value of 1,00,000 at a discount of 6%. The debentures

Question:

Step by Step Answer:

When a company issues debentures at a discount the discount amount represents the difference between ...View the full answer

Corporate Accounting

Students also viewed these Business questions