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Journal entries for Deep discount bond
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Suppose deep discount bond purchased for Rs.1000 and at maturity after 10 years we received Rs 1500. We have booked difference amount of Rs1500-Rs1000 = Rs500 as interest accrued but not due for 10 years. Now after 5 years prematured at Rs 800. So we have loss of Rs.250 in interest already...
Deep discount debenture (DDD)
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A ltd purchased 0% DDD of Rs.25,00,000/- (maturity period 20 years) at Rs. 250,000/-. Company is not accounting for accrued income as per policy consistently followed by it and intends to account for either at the time of redemption or when its right to receive is actually established (i.e. either...
Accounting:discount bonds
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How to figure out the discounted price of bond selling at 6% but market is 8% View more questions Search
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