Cheer Ltd. is interested in issuing 10,000, 12% debentures of ₹100 each. You are required to pass necessary journal entries in each of the following situations: (a) Issued at 10% discount and redeemable at par (b) Issued

In the Books of XYZ Ltd. Journal Entries Particulars Dr. (₹) Cr. (₹) (a) Issued at 10% discount and redeemable at par Bank A/c Dr. 9,00,000 Discount on issue of Debentures A/c Dr. 1,00,000 To 12% Debentures A/c 10,00,000 (Being the issue of debentures at discount of 10% and redeemable at par) (b) Issued at 5% premium and redeemable at par Bank A/c Dr. 10,50,000 To 12% Debentures A/c 10,00,000 To Securities Premium A/c 50,000 (Being the issue of debenture at premium of 5% but repayable at par) (c) Issued at par and redeemable at premium of 5% Bank A/c Dr. 10,00,000 Loss on issue of Debentures A/c Dr. 50,000 To 12% Debentures A/c 10,00,000 To Premium on redemption of Debentures A/c 50,000 (Being the issue of debentures at par but repayable on premium of 5%) (d) Issued at discount of 5% and redeemable at premium of 10% Bank A/c Dr. 9,50,000 Loss on issue of Debentures A/c Dr. 1,50,000 To 12% Debentures A/c 10,00,000 To Premium on redemption of Debentures A/c 1,00,000 (Being the issue of debentures at discount but repayable on premium of 10%) (e) Issued at premium of 10% and redeemable at premium of 20% Bank A/c Dr. 11,00,000 Loss on issue of Debentures A/c Dr. 1,00,000 To 12% Debentures A/c 10,00,000 To Premium on redemption of Debentures A/c 2,00,000 (Being the issue of debentures at premium of 10% and redemption at premium of 20%)