On 1st April, 2013, Sunshine Ltd. issued Rs 10,00,000, 15% Debentures of Rs 100 each at 8% discount payable :
Rs 40 on application.
The balance on allotment.
These debentures were to be redeemed at a premium of 5% after five years. All the debentures were subscribed for by the public.
Interest on these debentures was to be paid half-yearly which was duly paid by the company.
You are required to:
(i) Pass journal entries in the first year of debenture issue (including entries for debenture interest)
(ii) Prepare the 15% Debenture Account for the year ending 31st March,2014.
