Advertisements
Advertisements
प्रश्न
A.Ltd. issued 50,00,000, 8% Debenture of Rs 100 at a discount of 6% on April 01, 2009 redeemable at premium of 4% by draw of lots as under:
20,00,000 Debentures on March, 2011
10,00,000 Debentures on March, 2013
20,00,000 Debentures on March, 2014
Compute the amount of discount to be written-off in each year till debentures are paid. Also prepare discount/loss on issue of debenture account.
Advertisements
उत्तर १
Loss on issue of debenture = 6% (discount on issue) + 4% (premium on redemption) = 10%
`50,00,000 xx 100 xx 10/100 = 5,00,00,000`
|
At the end of |
Debenture Outstanding |
Ratio |
Loss to be written off every year |
||
|
March 2010 |
50,00,00,000 |
5 |
`5,00,00,000 xx 5/18` |
= |
1,38,88,889 |
|
March 2011 |
50,00,00,000 |
5 |
`5,00,00,000 xx 5/18` |
= |
1,38,88,889 |
|
March 2012 |
30,00,00,000 |
3 |
`5,00,00,000 xx 3/18` |
= |
83,33,333 |
|
March 2013 |
30,00,00,000 |
3 |
`5,00,00,000 xx 3/18` |
= |
83,33,333 |
|
March 2014 |
20,00,00,000 |
2 |
`5,00,00,000 xx 2/18` |
= |
55,55,556 |
|
|
|
18 |
|
|
Rs 5,00,00,000 |
Loss on Issue of Debenture Account
|
Dr. |
|
|
|
|
|
|
Cr. |
|
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
|
2009 April 01 |
Debenture |
|
5,00,00,000 |
2010 March 31 |
Profit and Loss |
|
1,38,88,889 |
|
|
|
|
|
|
|
Balance c/d |
|
3,61,11,111 |
|
|
|
|
|
5,00,00,000 |
|
|
|
5,00,00,000 |
|
|
2010 April 01 |
Balance b/d |
|
3,61,11,111 |
2011 March 31 |
Profit and Loss |
|
1,38,88,889 |
|
|
|
|
|
|
|
Balance c/d |
|
2,22,22,222 |
|
|
|
|
|
3,61,11,111 |
|
|
|
3,61,11,111 |
|
|
2011 April 01 |
Balance b/d |
|
2,22,22,222 |
2012 March 31 |
Profit and Loss |
|
83,33,333 |
|
|
|
|
|
|
|
Balance c/d |
|
1,38,88,889 |
|
|
|
|
|
2,22,22,222 |
|
|
|
2,22,22,222 |
|
|
2012 April 01 |
Balance b/d |
|
1,38,88,889 |
2013 March 31 |
Profit and Loss |
|
83,33,333 |
|
|
|
|
|
|
|
Balance c/d |
|
55,55,556 |
|
|
|
|
|
1,38,88,889 |
|
|
|
1,38,88,889 |
|
|
2013 April 01 |
Balance b/d |
|
55,55,556 |
2014 March 31 |
Profit and Loss |
|
55,55,556 |
|
|
|
|
|
55,55,556 |
|
|
|
55,55,556 |
|
उत्तर २
| Journal of A Ltd. | ||||
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
| 2009 | ||||
| April 1 | Bank A/c ...Dr. | 47,00,00,000 | ||
| To Debenture application and allotment | 47,00,00,000 | |||
| (Being application money received) | ||||
| April 1 | Debenture application and allotment A/c | 47,00,00,000 | ||
| Loss on issue of debenture | 5,00,00,000 | |||
| To 8% Debenture | 50,00,00,000 | |||
| To Premium on Redemption | 2,00,00,000 | |||
| (Being amount transferred to debenture A/c) | ||||
| 2010 | ||||
| Mar. 31 | Statement of profit and loss A/c ...Dr. | 5,00,00,000 | ||
| To loss on issue of debenture A/c | 5,00,00,000 | |||
| (Being loss on issue charged to statement of profit and loss account) | ||||
| 2019 | ||||
| April 30 | Debenture redemption Investment A/c ...Dr. | 3,00,00,000 | ||
| To Bank A/c | 3,00,00,000 | |||
| (Being amount invested) | ||||
| 2020 | ||||
| Mar. 31 | 8% Debenture A/c ...Dr. | 20,00,00,000 | ||
|
Premium on redemption A/c ...Dr. |
80,00,000 | |||
| To Debenture holder A/c | 20,80,00,000 | |||
| (Being amount transfer to debenture holder A/c) | ||||
| Mar. 31 | 8% Debenture holder A/c ...Dr. | 20,80,00,000 | ||
|
To Bank A/c |
20,80,00,000 | |||
| (Being amount paid to Debenture holder) | ||||
| April 30 | Bank A/c ...Dr. | 1,50,00,000 | ||
| To Debenture redemption Investment A/c | 1,50,00,000 | |||
| (Being debenture Investment sold) | ||||
| 2021 | ||||
| Mar. 31 | 8% Debenture A/c ...Dr. | 10,00,00,000 | ||
| Premium on redemption A/c ...Dr. | 40,00,000 | |||
| To Debenture holder A/c | 10,40,00,000 | |||
| (Being amount transfer to Debenture holder A/c) | ||||
| Mar. 31 | Debenture holder A/c ...Dr. | 10,40,00,000 | ||
| To Bank A/c | 10,40,00,000 | |||
| (Being amount paid to debenture holder) | ||||
| Apr. 30 | Debenture Redemption Investment A/c ...Dr. | 1,50,00,000 | ||
| To Bank A/c | 1,50,00,000 | |||
| (Being amount Invested) | ||||
| 2022 | ||||
| Mar. 31 | Bank A/c ...Dr. | 3,00,00,000 | ||
| To Debenture Redemption Investment A/c | 3,00,00,000 | |||
| (being Investment sold) | ||||
| Mar. 31 | 8% Debenture A/c ...Dr. | 20,00,00,000 | ||
| Premium on Redemption A/c ...Dr. | 80,00,000 | |||
| To Debenture holder A/c | 20,80,00,000 | |||
| (Being amount transfer to debenture holder A/c) | ||||
| Mar. 31 | Debenture holder A/c ...Dr. | 2,08,00,000 | ||
| To Bank A/c | 2,08,00,000 | |||
| (Being amount paid to debenture holder) | ||||
| Loss on Issue of Debenture A/c | |||||
| Date | Particular | Amount | Date | Particular | Amount |
| 2009 | 2010 | ||||
| April 1 | To 8% Debenture A/c | 5,00,00,000 | Mar. 31 | By Statement of Profit and loss A/c | 5,00,00,000 |
| 5,00,00,000 | 5,00,00,000 | ||||
APPEARS IN
संबंधित प्रश्न
What is meant by an ‘Irredeemable Debenture’?
B.Ltd. purchased assets of the book value of Rs 4,00,000 and took over the liability of Rs 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at Rs,3,80,000, be paid by issuing debentures of Rs 100 each.
What Journal entries will be made in the following three cases, if debentures are issued: (a) at par; (b) at discount; (c) at premium of 10%? It was agreed that any fraction of debentures be paid in cash.
Vishwas Ltd. issued 2,000; 9% Debentures of ₹ 100 each payable as follows:
₹ 25 on application; ₹ 25 on allotment and ₹ 50 on first and final call.
Applications were received for all the debentures along with the application money did allotment was made . Call money was also received on the due date.
Pass necessary Journal entries in the books of the company.
Narain Laxmi Ltd. invited applications for issuing 7,500; 12% Debentures of ₹ 100 each at a premium of ₹ 35 per debenture . The full amount was payable on application. Applications were received for 10,000 Debentures. Allotment was made to all the applications on pro rata.
Pass necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd.
Nipa Limited issued ₹ 10,00,000 Debentures of ₹ 100 each at a premium of 10% , payable 25% on application (including premium) and the balance on allotment . The debentures were applied for and the amount was dully received.
You are required to give Journal entries and prepare Cash Book.
Grown Ltd. issued 500, 10% Debentures of ₹ 1,000 each credited as fully paid-up to the promoters for their services to incorporate the company. It also issued 100, 10% Debentures of ₹ 1,000 each credited as fully paid-up to the underwriters towards their commission. Pass the Journal entries.
Journalise the following:
(a) A debenture issued at ₹95, repayable at ₹ 100.
(b) A debenture issued at ₹95, repayable at ₹ 105.
(c) A debenture issued at ₹95, repayable at ₹ 105.
The face value of debenture is ₹ 100 in each of the above cases.
Pass necessary Journal entries relating to the issue of debentures for the following:
(a) Issued ₹ 4,00,000; 9% Debentures of ₹ 100 each at a premium of 8% redeemable at 10% premium.
(b) Issued ₹ 6,00,000; 9% Debentures of ₹ 100 each at par, repayable at a premium of 10%.
(c) Issued ₹ 10,00,000; 9% Debentures of ₹ 100 each at a premium of 5%, redeemable at par.
On 1st June, 2017, R Energy Ltd. issued 10,000, 7% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% at the end of five years. All the debentures were subscribed and allotment was made.
Prepare the Balance Sheet (extract) as at 31st March, 2018.
Discount on issue of debentures is shown under the following head in the Balance Sheet?
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 situations are commonly found in practice during the issue and redemption of debentures?
Which of the following given statement is correct.
Statement 1 - "Debenture is written instrument acknowledging a debt under the common seal of the company"
Statement 2 - Debenture is oral instrument acknowledging a debt under the common seal of the company"
Which of the following. column indicated in·the statement given below is to be credited?
"Writing off the loss on issue of debentures"
The loss on issue of Debentures is written-off from ______.
Pick the odd one out:
Loss on issue of debentures is treated as ______.
Which of the following is not a source of cash?
MK Ltd. has outstanding Rs. 30,000 11% debentures of Rs. 100 each redeemable at 10% premium as follows:
| March 31, 2018 - | 10,000 debentures |
| March 31, 2019 - | 12,000 debentures |
| March 31, 2020 - | Remaining debentures |
Pass necessary journal entries in the books of the company.
XYZ Ltd. Issued 6,000, 12% Debentures of ? 50 each on April 1, 2014. Interest on these debenture is payable annually 3151 March each year. The debentures are redeemable in four equal installments at end of third, fourth, fifth and sixth year. You are required to pan journal entries at the time of issue and redemption of debentures in the books of the company under following cases:
- Debentures are issued at par and redeemable at par.
- Debentures are issued at a premium of 10% and redeemable at par.
- Debentures are issued at a discount of 10% and redeemable at par.
- Debenture are issued at par but redeemable at a premium of 10%.
- Debentures are issued at a premium of 10% and redeemable at premium of 10%.
- Debenture are issued at a discount of 10% and redeemable at a premium of 10%.
