Question:
On 1st April, 2024, Zara Ltd. issued 8,000, 9% Debentures of ₹ 100 each at a discount of 10%. The company had a balance of ₹ 50,000 in the Securities Premium Account on the same date.
Pass necessary journal entries for the issue of debentures and to write off discount on issue of debentures.
On 1st April, 2024, Zara Ltd. issued 8,000, 9% Debentures of ₹ 100 each at a discount of 10%. The company had a balance of ₹ 50,000 in the Securities Premium Account on the same date.
Pass necessary journal entries for the issue of debentures and to write off discount on issue of debentures.
Pass necessary journal entries for the issue of debentures and to write off discount on issue of debentures.
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When debentures are issued at premium or discount, remember: Premium is credited to Securities Premium A/c. Discount is written off first from Securities Premium (if available), then from Statement of Profit \& Loss.
Updated On: Feb 26, 2026
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Solution and Explanation
In the books of Zara Ltd.
Journal Entries
Journal Entries
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