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Xyz limited issue 2,000 10% deventure of a rs 100 each on 1st April 2016 at a discount of 10% to be redeemable at a premium of 10% .give journal entries related to issue of debenture and debenture interest for year ending 31st March 2017 assuming interest was paid half yearly on September 13 March 31 tax deducted at source at each 10%?
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Journal Entries for the Issue of Debentures:

1. To record the issue of 2,000 10% debentures at a discount of 10% on 1st April 2016:

Debenture Account Dr. 20,000
Discount on Issue of Debentures Account Dr. 2,000
To Cash/Bank Account Cr. 22,000

Explanation: The amount received from the issue of debentures is recorded in the Debenture Account, and the discount on the issue is recorded in the Discount on Issue of Debentures Account.

2. To record the premium on redemption of debentures:

Debenture Redemption Reserve Account Dr. 2,000
To Debenture Account Cr. 2,000

Explanation: The premium on the redemption of debentures is transferred to the Debenture Redemption Reserve Account.

Journal Entries for Debenture Interest:

1. To record the payment of half-yearly interest on 13th September 2016:

Debenture Interest Account Dr. 1,000
TDS (Tax Deducted at Source) Account Dr. 100
To Debenture Interest Payable Account Cr. 1,100

Explanation: The debenture interest is recorded in the Debenture Interest Account, and the tax deducted at source is recorded in the TDS Account. The debenture interest payable is reduced by the amount paid.

2. To record the payment of half-yearly interest on 31st March 2017:

Debenture Interest Account Dr. 1,000
TDS (Tax Deducted at Source) Account Dr. 100
To Debenture Interest Payable Account Cr. 1,100

Explanation: The debenture interest is recorded in the Debenture Interest Account, and the tax deducted at source is recorded in the TDS Account. The debenture interest payable is reduced by the amount paid.

Note: The TDS is deducted at a rate of 10% on the debenture interest amount.
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Xyz limited issue 2,000 10% deventure of a rs 100 each on 1st April 2016 at a discount of 10% to be redeemable at a premium of 10% .give journal entries related to issue of debenture and debenture interest for year ending 31st March 2017 assuming interest was paid half yearly on September 13 March 31 tax deducted at source at each 10%?
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