Riaz Ltd. Issued 1,000 6% Debentures of Rs.100 each. Give journal entries in the following cases and also prepare balance sheet:

 i) The debentures are issued at par

 ii) The debentures are issued at 10% premium

 iii) The debentures are issued at 10% discount

 Sarfraz Ltd made the following issue of debentures:

i) 4,000 debentures of Rs.100 each issued at par for each.

ii) To a creditor (Asia Ltd) who supplied computers of worth Rs. 100,000; 1,100 debentures of Rs.100 each.

iii) 1,000 debentures of Rs.100 each for cash, at a premium of Rs. 5 each.

Required: Pass Journal entries and prepare balance sheet

Answer rating: 100% (QA)

i 4000 debentures of Rs100 each issued at par for each Journal Entry Debentures Issued at par Partic... View the full answer