Advertisements
Advertisements
प्रश्न
Alka Ltd. issued 5,000, 10% Debentures of ₹ 1,000 each at a discount of 10% redeemable after 5 years. According to the terms of issue, ₹ 500 (after discount of ₹ 50) was payable on application and the balance amount on allotment of debentures. Record necessary entries regarding issue of 10% Debentures.
Advertisements
उत्तर
| Journal Entries In the Books of Alka Ltd. |
||||
|---|---|---|---|---|
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
| 1. | Bank A/c ...Dr. | 25,00,000 | ||
| To Debentures Application A/c | 25,00,000 | |||
| (Application money received @ ₹ 500 per debenture) | ||||
| 2. | Debentures Application A/c ...Dr. | 25,00,000 | ||
| Discount on Issue of Debentures A/c ...Dr. | 2,50,000 | |||
| To 10% Debentures A/c | 27,50,000 | |||
| (Application money transferred and discount of ₹ 50 per debenture recorded) | ||||
| 3. | Debentures Allotment A/c ...Dr. | 20,00,000 | ||
| Discount on Issue of Debentures A/c ...Dr. | 2,50,000 | |||
| To 10% Debentures A/c | 22,50,000 | |||
| (Allotment money due after adjustment of discount of ₹ 50 per debenture) | ||||
| 4. | Bank A/c ...Dr. | 20,00,000 | ||
| To Debentures Allotment A/c | 20,00,000 | |||
| (Allotment money received @ ₹ 400 per debenture) | ||||
Working note:
Face value of debentures:
5,000 × ₹ 1,000 = ₹ 50,00,000
Total discount @ 10%:
₹ 50,00,000 × 10% = ₹ 5,00,000
On application, ₹ 500 is payable after discount of ₹ 50. Therefore, nominal amount due on application:
₹ 500 + ₹ 50 = ₹ 550
Balance nominal amount due on allotment:
₹ 1,000 − ₹ 550 = ₹ 450
Remaining discount on allotment:
₹ 100 − ₹ 50 = ₹ 50
Hence, cash payable on allotment:
₹ 450 − ₹ 50 = ₹ 400
संबंधित प्रश्न
What is the discount on the issue of debentures?
Short Answer Question
Name the head under which ‘discount on issue of debentures’ appears in the Balance Sheet of a company.
B. Ltd. issued debentures at 94% for Rs 4,00,000 on April 01, 2011 repayable by five equal drawings of Rs 80,000 each. The company prepares its final accounts on March 31 every year.
Indicate the amount of discount to be written-off every accounting year assuming that the company decides to write-off the debentures discount during the life of debentures. (Amount to be written-off: 2012 Rs 8,000; 2013 Rs 6,400; 2014 Rs 4,800; 2015 Rs 2,000; 2016 Rs 1,600).
Newton Ltd. purchased a Machinery from B for ₹ 5,76,000 to be paid by the issue of 9% Debentures of ₹ 100 each at 4% discount. Journalise the trasactions.
Deepak Ltd purchased furniture of ₹ 2,20,000 from M/s. Furniture Mart. 50% of the amount was paid to M/s. Furniture Mart by accepting a bill of exchange and for the balance, the company issued 9% debentures of ₹ 100 each at a premium of 10% in favor of M/s. Furniture Mart.
Pass Journal entries in the books of Deepak Ltd.
Exe Ltd. purchased the assets of the book value ₹4,00,000 and took over the liabilities of ₹ 50,000 from Mohan Bros.It was agreed that the purchase consideration ,settled at ₹3,80,000 be paid by issuing debentures of ₹ 100 each.
Pass journal entries if debenture are issued:
(a) at par
(b) at a discount of 10% and
(c) at a premium of 10%.
It was agreed that any fraction of debentures be paid in cash.
Footfall Ltd. issues 10,000 Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 5% after the expiry of three years.
Pass Journal entries for the issue of these debentures.
On 1st April, 2015, V.V.L.Ltd issued 1,000, 9% Debentures of ₹ 100 each at a discount of 6%, redeemable at a premium of 10% after three years. Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31st March, 2016, assuming that interest is payable on 30th September and 31st March and the rate of tax deducted at source is 10%. The company closes its books on 31st March every year.
Kitply Ltd.issued ₹ 2,00,000, 10% Debentures at a discount of 5% .The terms of issue provide the repayment at the end of 4 years . Kitply Ltd.has a balance of ₹ 5,00,000 in Securities Premium Reserve . The company decided to write off discount on issue of debentures from Securities Premium Reserve in the first year.
Pass the journal entry.
A limited company issued ₹ 1,00,000, 9% Debentures at a discount of 6% on 1st April, 2017. These debentures are to be redeemed equally, spread over 5 annual instalments.
Pass the Journal entries for issue of debentures and writing off the discount.
On 1st April, 2015. Mathew Ltd. issued 10,000, 9% Debentures of ₹ 100 each at a discount of 5%, redeemable at a premium of 5%. These debentures were redeemable as follows:
| On 31st March, 2016 | 2,000 Debentures; |
| On 31st March, 2017 | 5,000 Debentures; |
| On 31st March, 2018 | 3,000 Debentures. |
Prepare the Loss on Issue of Debentures Account, Debentures Account and Premium on Redemption of Debentures Account for three years.
When debentures are issued at a discount and are redeemable at a premium, which of the following accounts is debited at the time of issue?
Which of the following given statement is correct.
Statement 1 - "Shares cannot be converted into debentures whereas debentures can be converted into shares"
Statement 2 - "Shares can be converted into debentures whereas debentures cannot be converted into shares"
Loss on Issue of Debenture Account is shown:
Debentures are considered as ______ equity.
Assertion (A): Issue of debenture does not result in dilution of interest of equity shareholders.
Reason (R): Debenture holders have voting rights.
Which of the following statement is true?
Discount on issue of debentures is a ______
Premium received on issue of debentures may be utilised for:
