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'Ananya Ltd.' Had an Authorised Capital of ₹ 10,00,00,000 Divided into 10,00,000 Equity Shares of ₹ 100 Each.

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प्रश्न

'Ananya Ltd.' had an authorised capital of ₹ 10,00,00,000 divided into 10,00,000 equity shares of ₹ 100 each. The company had already issued 2,00,000 shares. The dividend paid per share for the year ended 31st March,2007 was ₹ 30 . The management decided to export its products to African countries . To meet the requirements of additional funds, the finance manager put up the following three alternate proposals before the Board of Directors:
(a) Issue 47,500 equity shares at a premium of ₹ 100 per share .
(b) Obtain a long-term loan from bank which was available at 12% per annum.
(c) Issue 9% Debentures at a discount of 5%.
After evaluating these alternatives , the company decided to issue 1,00,000,9% Debentures on 1st April,2008. The face value of each debentures  was ₹ 100 . These debentures were redeemable in four installments starting from the end of third year, which were as follows: 

Year   III  IV  V  VI
Amount (₹)  10,00,000  20,00,000  30,00,000 40,00,000

Prepare 9% Debenture Account form 1st April, 2008 till all the debentures were redeemed.

रोजनामा प्रविष्टि
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उत्तर

9% Debentures Account

Dr.                                                                                 Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2009

 

 

 

2008

 

 

 

Mar. 31

Balance c/d

 

1,00,00,000

Apr. 01

Debenture Application A/c

 

95,00,000

 

 

 

 

Apr. 01

Discount on Issue of Debentures A/c

 

5,00,000

 

 

 

1,00,00,000

 

 

 

1,00,00,000

2010

 

 

 

2009

 

 

 

Mar. 31

Balance c/d

 

1,00,00,000

Apr. 01

Balance b/d

 

1,00,00,000

 

 

 

1,00,00,000

 

 

 

1,00,00,000

2011

 

 

 

2010

 

 

 

Mar. 31

Debentureholders’ A/c

 

10,00,000

Apr. 01

Balance b/d

 

1,00,00,000

Mar. 31

Balance c/d

 

90,00,000

 

 

 

 

 

 

 

1,00,00,000

 

 

 

1,00,00,000

2012

 

 

 

2011

 

 

 

Mar. 31

Debentureholders’ A/c

 

20,00,000

Apr. 01

Balance b/d

 

90,00,000

Mar. 31

Balance c/d

 

70,00,000

 

 

 

 

 

 

 

90,00,000

 

 

 

90,00,000

2013

 

 

 

2012

 

 

 

Mar. 31

Debentureholders’ A/c

 

30,00,000

Apr. 01

Balance b/d

 

70,00,000

Mar. 31

Balance c/d 

 

40,00,000

 

 

 

 

 

 

 

70,00,000

 

 

 

70,00,000

2014

 

 

 

2013

 

 

 

Mar. 31

Debentureholders’ A/c

 

40,00,000

Apr. 01

Balance b/d

 

40,00,000

 

 

 

40,00,000

 

 

 

40,00,000

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Creation of Debenture Redemption Reserve
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?

संबंधित प्रश्न

State the provisions of the Companies Act, 2013 for the creation of 'Debenture Redemption Reserve'.


X Ltd. had Rs 10,00,00 9% debentures due to be redeemed out of profits on 1st October 2009 at a premium of 5%. The company had a

Debentures Redemption Reserve of Rs 4,14,000. Pass necessary journal entries at the time of redemption.

 


Dow Ltd. issued ₹ 2,00,000; 8% Debentures of ₹ 10 each at a premium of 8% on 30th June, 2016 redeemable on 31st March, 2018. How much amount should be transferred to Debentures Redemption Reserve before redemption of debentures? 


On 31st March, 2003, G Ltd. had ₹ 8,00,000;9% Debentures due for redemption. The company had a balance of ₹ 1,40,000 in its Debentures Redemption Reserve . Pass necessary journal entries for redemption of debentures. 


India Textiles Corporation Ltd. has outstanding ₹ 50,00,000; 9% Debentures of ₹ 100 each due for redemption on 31st July, 2019. Pass Journal entries for redemption assuming that there is a balance of ₹ 3,00,000 in Debentures Redemption Reserve  on the date of redemption.


Godrej Ltd. has 20,000; 7% Debentures of ₹ 100 each due for redemption on 31st August, 2018. There is a balance of ₹ 3,50,000 in Debentures Redemption Reserve Account as on 31st March, 2016. Investment, as required by the Companies Act, 2013 is made on 1st April, 2017 in fixed deposit bearing interest @ 6% p.a. Bank deducted TDS @ 10% on its maturity which is 31st March, 2018.
Pass Journal entries for redemption of debentures.


Apollo Ltd.issued 21,000; 8% Debentures of ₹ 100 each on 1st April, 2013 redeemable at a premium of 8% on 30th June, 2019. The company decided to transfer the required amount to Debentures Redemption Reserve in three equal annual instalments starting with 31st March, 2017. Required investment was made in Government Securities on 30th April, 2019. Ignore interest on debentures and also investment.
Pass necessary Journal entries regarding issue, transfer to DRR, investment, and redemption of debentures.


On 1st April, 2016, following were the balances of Blue Bird Ltd.:

10% Debentures (redeemable on 30th September, 2017) ₹ 15,00,000
Debentures Redemption Reserve ₹   2,00,000

The company met the requirements of the Companies Act, 2013 regarding Debentures Redemption Reserve and Investment and redeemed the debentures.

Pass necessary Journal entries for the above transactions in the books of the company.


Venus Ltd. had 9,000, 9% Debentures of ₹ 100 each due for redemption . These debentures are to be redeemed in 3 equal installments (starting from 31st March,2015) at a premium of 10%. The company had a balance of ₹ 25,000 in the Debentures Redemption Reserve .
Pass necessary entries for redemption of debentures assuming that company transfer the balance of DRR to General Reserve after redeeming all the debentures. 


Tata Motors Ltd. issued 40,000;7% Debentures of ₹ 100 each on 1st July,2009 redeemable at premium of 5% as under:
On 31st March,2015                         16,000 Debentures
On 31st March,2016                         16,000 Debentures
On 31st March,2017                            8,000 Debentures
It was decided to transfer amount out of profit  to Debentures Redemption Reserve  ₹ 2,00,000 on 31st March, 2012; ₹ 4,00,000 on 31st March , 2013 and balance on 31st March, 2014. It invested the required amount in terms of the Companies Act, 2013 in Government Securities and decided to realise them after last redemption . Paas journal entries ignoring interest .


No debenture redemption reserve is required for debentures issued by ______.


Choose the appropriate alternative from the given options:
Madura Ltd. decided to redeem its 10,000, 10% debentures of ₹100 each at a premium of 8%. The minimum amount transferred to debenture redemption reserve will be :


On 1st April 2015, Mayfair Ltd. issued 4,000 9% debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 8%. The debentures were redeemable on 31st March 2019. The company created the necessary minimum amount of debenture redemption reserve and purchased the required amount of debenture redemption investments as per the provisions of Companies Act, 2013.
Pass the necessary journal entries for the redemption of debentures.


What is the maximum amount of debentures which an unlisted company, other than a NBFC and HFC, can redeem out of its capital?


Sunrise Ltd. a listed NBFC, had outstanding 20,000, 7% Debentures of ₹ 100 each, due for redemption on 31st March, 2022.

As per the provisions of the Companies Act, 2013, what amount, if any, does the company need to transfer to Debenture Redemption Reserve, before it can redeem the debentures?


Jerome Ltd., an unlisted manufacturing company, had 20,000, 6% Debentures of ₹100 each due for redemption at par on 31st March, 2022. On this date the company had the required amount of ₹ 2,00,000 in its Debenture Redemption Reserve.

The Debenture Redemption Investment which was purchased on 30th April, 2021, was realised at 98% on the date of redemption and the debentures were redeemed on the due date.

You are required to pass journal entries in the books of the company for the year 2021-22. (Ignore interest on debentures).


On 1st April, 2022, the following balances appeared in the books of Alpha Pvt. Ltd.

9% Debentures redeemable on 31st March, 2023, at a premium of 2% ₹ 50,00,000
Debenture Redemption Reserve ₹ 5,00,000

The Debenture Redemption Investment, which was purchased by the company on 1st April, 2022, was realised at 101% on the date of redemption and the debentures were redeemed on the due date. 

You are required to prepare the following accounts for the year 2022-23 in the books of Alpha Pvt. Ltd.

  1. Debenture holders’ Account.
  2. Debenture Redemption Investment Account.

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