Page 12 - LN ISSUE OF DEB

To % Debentures A/c

VARIOUS CASES FROM THE POINT OF VIEW OF REDEMPTION:

Issued at Par, redeemable at Par

Bank A/c Dr.

To Deb. Application A/c

(App. Money received)

Deb. Application A/c Dr.

To Debentures A/c

(Being App. Money transferred to Deb. A/c)

Issued at Premium, redeemable at Par

Bank A/c Dr.

To Deb. Application A/c

(App. Money received)

Deb. Application A/c Dr.

To Debentures A/c

To Securities Premium A/c

Issued at Par, redeemable at Premium

Bank A/c Dr.

To Deb. Application A/c

(App. Money received)

Deb. Application A/c Dr.

Loss on issue of Deb. A/c Dr.

To Debentures A/c

To Premium on Redemption of Deb. A/c

(Being Deb. Issued at par redeemable at premium)