You are required to pass journal entries to record the following issue of debentures and to write off any capital losses.
(a) Zoom Ltd. issues 6,000, 12% Debentures of Rs 100 each at par redeemable after 5 years also at par.
(b) Zola Ltd. issues 5,000, 13% Debentures of Rs 100 each at a discount of 10% to be redeemed at par after 7 years.
(c) Zubic Ltd. issues 11% Debentures of the total face value of Rs12,00,000 at a premium of 5% to be redeemed at par after 6 years.
(d) Ruby Ltd. issues Rs 5,00,000, 12% Debentures at a premium of 5% to be redeemed at 10% premium after 10 years.
(e) Emerald Ltd. issues 3,000, 9% Debentures of Rs 100 each at a discount of 7% to be redeemed at a premium of 10% after 4 years.
Note: All the companies write off their capital losses in the year in which they occur.
