9/19/2023 0 Comments Zevera premium account 4-28-2016![]() ![]() The excess of issue price over face value is premium. 1000 is offered at 1,050, it is a case of issue of debentures at premium. If debentures are issued at a price more than its nominal value (face value) such an issue is called issue at a premium. Give journal entries ledger accounts and balance sheet (extract only). The issue was fully subscribed and all money was received in full. 30 on allotment (discount to be adjusted with allotment) and Rs. ![]() 100 each at a discount of 10% on Appayable as follows: (Issue of debentures at discount) Samsung Ltd issued 6,000 14% debentures of Rs. The working of issue of debentures at a discount is well explained by the following Illustration: The requisite entries to be passed are as follows: Discount on issue of debentures account is supposed to be allowed on allotment, unless, otherwise, mentioned. It is a capital loss and until it is written off-completely, it is shown on the asset side of balance sheet, under the heading ‘Miscellaneous Expenditure’, as a fictitious asset. As a principle of equity, it is desirable to write off this loss.ĭisclosure of Discount in Balance Sheet : 50 on each debenture is loss to the company. It is important to note that the Companies Act has not put any restriction on the maximum limit of discount. When debentures are issued by company at a price less than its nominal value (face value) it is said to be issued at discount. Full amount is payable on application, Pass journal entries. Delhi Computers Company issued 3000, 10% Debentures of Rs. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |