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On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were...

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above events in the books of DB Limited for the period 1 March 2001 to 28 February 2007

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Journal entry on 1st MAR 2007

Debit Cash (60,000*98)   R 5,880,000

Debit Discount of issue of Debentures (60,000*2) R 120,000

Credit 15% Debentures R 6,000,000

( Being 15% Debentures issued at R98 having Par R100)

Journal entry on 28th Feb 2010

Debit  15% Debentures (R6,000,000/4) R 1,500,000

Credit Cash R 1,500,000

(Being 15% Debenture redeemed at par R100)

Journal entry on 28th Feb 2011

Debit  15% Debentures (R6,000,000/4) R 1,500,000

Credit Cash R 1,500,000

(Being 15% Debenture redeemed at par R100)

Journal entry on 28th Feb 2012

Debit  15% Debentures (R6,000,000/4) R 1,500,000

Credit Cash R 1,500,000

(Being 15% Debenture redeemed at par R100)

Journal entry on 28th Feb 2013

Debit  15% Debentures (R6,000,000/4) R 1,500,000

Credit Cash R 1,500,000

(Being 15% Debenture redeemed at par R100)

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