Q.1 Three year bonds are issued at face value of SR100,000 on Jan. 1, 2007, a...

Answer 1

Bank A/c Dr 100000

To Bonds A/c 100000

Interest on Bonds A/c Dr 8000

To Bank A/c 8000

Answer 2

Bank A/c Dr 800000

To Bonds A/c 800000

Interest on Bonds A/c Dr 40000

To Bank A/c 40000

(Entry to be recorded for interest payment on both the dates)

Answer 4

Bank A/c Dr 582000

Discount on issue of Bonds A/c Dr 18000

To Bonds A/c 600000

Interest on Bonds A/c Dr 42000

To Bank A/c 42000

Answer 5

Bank A/c Dr 424000

To Bonds A/c 400000

To Premium on issue of Bonds A/c 24000

Interest on Bonds A/c Dr 36000

To Bank A/c 36000

Answer 7

Bonds A/c Dr 100000

Loss on Redemption of Bonds A/c Dr 5000

To Bank A/c 105000

Expenses on Recall of Bonds Ac Dr 2000

To Bank A/c 2000

Interest on Bonds A/c Dr 8000

To Bank A/c 8000

Answer 8

Bank A/c Dr 776000

Discount on issue of Bonds A/c Dr 24000

To Bonds A/c 800000

Bonds Issue Cost A/c Dr 16000

To Bank A/c 16000

Bonds A/c Dr 800000

Loss on Redemption of Bonds A/c Dr 8000

To Bank A/c 808000

Answer 9

Bonds A/c Dr 500000

To Bank A/c 495000

To Profit on Retirement of Bonds A/c 5000

Unamortized Premium A/c Dr 5250

To unamortized Issue Cost A/c 5250