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متابعة

Required: Give journal entries and prepare balance sheet.?

Khush Bakht Ltd issued6,2% Debentures of Rs. each at on1st January,. The debenture holder had the option of converting within one year debentures into ordinary shares of Rs. each at Rs..

 

At the end of1st year the interest on debentures was outstanding. Holders of debentures decided to take advantages of the option.

Required: Give journal entries and prepare balance sheet.

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تم إضافة السؤال من قبل Waheed Nasir , Senior Accountant , iD&beyond LLC (Restaurant, Interior & Contracting)
تاريخ النشر: 2016/08/16
Muhammad Waleed
من قبل Muhammad Waleed , Assistant Manager Finance , Turnotech (Private) Limited

 

Accounting entries at the time of issue of debentures is as follows

Dr.  Cash/Bank     1

Cr.  Debenture(loan)   1

At the time of year, the following entries are passed

Dr. Interest expense 0.062

Cr. Interest payable     0.062

When the debenture holder get the instrument converted into shares the

Dr.  Debenture 1

Cr.  Share capital 

Santosh Yadav
من قبل Santosh Yadav , Executive engineering and maintenance , Shilpa Ltd.

Date of journal entry ,Accounts the name of accounts and funds to be credited

Md Naim-ul-huk Prince
من قبل Md Naim-ul-huk Prince , Asst Manager Commercial , A.K.M. KNIT WEAR LTD.

Cash Debit Rs/- 5000 Furniture Credit Rs/- 5000