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प्रश्न
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).
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उत्तर
Debenture issued = `4,00,000 " @ " 94%`
Discount on issue = `6%`
Amount on discount on issue of debenture = `4,00,000 xx 6/100 = 24,000`
Amount of discount to written off every year
In 2012 = ₹8,000
In 2013 = ₹6,400
In 2014 = ₹4,800
In 2015 = ₹3,200
In 2016 = ₹1,600
Working Notes:
|
Year |
Debentures Outstanding |
Ratio |
Months |
New Ratio (Ratio × Months) |
Amounts written off |
|
2012 |
|
|
|
|
|
|
Apr-Mar |
3,20,000 |
5 |
12 |
60 |
`24,000 xx 60/180 = 8,000` |
|
2013 |
|
|
|
|
|
|
Apr-Mar |
2,40,000 |
4 |
12 |
48 |
`24,000 xx 48/180 = 6,400` |
|
2014 |
|
|
|
|
|
|
Apr-Mar |
1,60,000 |
3 |
12 |
36 |
`24,000 xx 36/180 = 4,800` |
|
2015 |
|
|
|
|
|
|
Apr-Mar |
80,000 |
2 |
12 |
24 |
`24,000 xx 24/180 = 3,200` |
|
2016 |
|
|
|
|
|
|
Apr-Mar |
80,000 |
1 |
12 |
12 |
`24,000 xx 12/180 = 1,600` |
|
|
|
|
|
180 |
|
Note: As per NCERT, ₹2,000 discount has been written off in the year 2015 which is incorrect because then the total discount amounts to ₹22,800. Therefore, it should be ₹3,200.
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संबंधित प्रश्न
Short Answer Question
Name the head under which ‘discount on issue of debentures’ appears in the Balance Sheet of a company.
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.
A Ltd . issued 2,000; 9% Debentures of ₹ 100 each on the following terms:
₹20 on applications ;₹ 20 on allotment ; ₹ 30 on first call ; ₹ 30 on final call.
The public applied for 2,400 debentures. Applications for 1,800 debentures were accepted in full. Applications for 400 debentures were allotted 200 debentures and applications for 200 debentures were rejected . Pass necessary Journal entries .
Raj Ltd . issued 5,000; 8% Debentures of ₹ 100 each at a premium of 5% payable as follows:
₹ 10 on application ; ₹ 20 along with premium on allotment and balance on first and final call.
Pass necessary Journal entries.
Pass necessary Journal entries for the issue of debentures in the following cases:
- ₹ 40,000; 12% Debentures of ₹ 100 each issued at a premium of 5% redeemable at par.
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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.
Fill in the blank.
For recording the issue of debentures as collateral security by a journal entry _______ account is debited.
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?
The word 'debenture' has been derived from which Latin word (which means to borrow)?
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"
A debenture is a ______.
Which of the following is true with regard to 10% Debentures issued at a discount of 20%?
Debentures are considered as ______ equity.
A Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of B Ltd. for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 15% debentures of ₹ 100 each at 10% discount. The number of debentures to be issued is:
Interest on debentures is calculated on ______.
Maximum limit on premium on issue of debentures is ______.
Premium received on issue of debentures may be utilised for:
X Ltd. had outstanding 20,000 12% debentures of Rs. 100 each redeemable on June 30, 2019. Record necessary journal entries at the time of redemption.
