Question

Indicate in the column below, the account to be debited in case of the following transactions. 

Transaction Account to be Debited

i. Issue of debentures to a vendor in consideration of the business purchase. 

ii. Setting aside the amount for creating sinking fund for redemption of debentures. 

iii. The balance of debenture redemption reserve account after redemption of the debentures.

 iv. Purchase of own debentures by the company. 

v. Writing off discount on issue of debentures.

Answer 1

Account to be Debited

i. Vendor A/c

ii. Profit and Loss Appropriation A/c

iii. Debenture Redemption Reserve A/c

iv. Own debentures A/c

v. Profit and Loss A/c