Illustration 19

Debit
1 Cash 50,000
Debenture A/c
_____________________________________________________________________________________________________
2 Asset Purchased(Machinery) 45,000
Vendor A/c

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Vendor A/c 45,000
Debenture A/c
Securities Premium Acc

_______________________________________________________________________________________________________

3 Bank 10,000
Bank Loan
--------------------------------------------------------------------------------------------------
Debenture Suspense Account 15,000
Debenture Account

Illustration 20

30-Sep-12 Debenture Interest Expense Account [{(5,000*100)*.10}/2]

Income Tax Payable Account (25,000*10%)
Debenture Holders Account
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30-Sep-12 Debenture Holders Account
Bank
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30-Sep-12 Income Tax Payable Account
Bank

31-Mar-13 Debenture Interest Expense Account [{(5,000*100)*.10}/2]

Income Tax Payable Account (25,000*10%)
 Debenture Holders Account
----------------------------------------------------------------------------------------------------------------------------------------------------
31-Mar-13 Debenture Holders Account
Bank
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31-Mar-13 Income Tax Payable Account
Bank

31-Mar-13 P&L Account

Debenture Interest Expense Account
______________________________________________________________________________________________________

Illustration 21

1-Apr-15 Bank (500*480)

Debenture Application & Allot. A/C

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1-Apr-15 Debenture Application and allotment account
Loss on issue of debenture 500x(20+25)
Discount on Issue of debenture
500x20
Loss on redemption of debenture
500x25
Debentures Account (500*500)
Premium on redemption of debenture

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30-Sep-15 Debenture Interest Expense Account (250,000*.09)/2
Income Tax Payable Account
Debenture Holders Account
-----------------------------------------------------------------------------------------------------------------------------------------------------

30-Sep-15 Debenture Holders Account

Income Tax Payable Account
Bank
----------------------------------------------------------------------------------------------------------------------------------------------------
31-Mar-16 Debenture Interest Expense Account (250,000*.09)/2
Income Tax Payable Account
Debenture Holders Account
----------------------------------------------------------------------------------------------------------------------------------------------------
 31-Mar-13 Debenture Holders Account
Income Tax Payable Account
Bank

31-Mar-13 P&L Account

Debenture Interest Expense Account
______________________________________________________________________________________________________
 Credit
50,000
______________________

45,000

35,000
10,000

_____________________________________________

10,000

15,000

Debit Credit

25,000
2,500
22,500
--------------------
22,500
22,500
--------------------
2,500
2,500

25,000
2,500
 22,500
---------------------
22,500
22,500
--------------------
2,500
2,500

50,000
50,000
___________________________

Debit Credit

240,000
240,000

--------------------
240,000
22,500

250,000
12,500

--------------------
11,250
1,125
10,125
----------------------

10,125
1,125
11,250
---------------------
11,250
1,125
10,125
--------------------
 10,125
1,125
11,250

22,500
22,500
___________________________