Page 9 - LN ISSUE OF DEB

To Vendor a/c

(Being asset purchased )

Vendor a/c Dr.

To Debenture Account

(Being payment made to Vendor by issuing

Debenture at Par )

When Debentures are issued at premium for purchase of asset:

Sundry Assets Account Dr.

To Vendor a/c

(Being asset purchased )

Vendor a/c Dr.

To Debenture Account

To Security Premium Account

(Being payment made to Vendor by issuing

Debenture at Premium )

When Debentures are issued at Discount for purchase of asset:

Sundry Asset Account Dr.

To Vendor a/c

(Being asset purchased )

Vendor a/c Dr.

Discount on Issue of Debenture a/c Dr.