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प्रश्न
BBG Ltd. invited applications for issuing 2,00,000 equity shares of Rs 10 each at a premium of Rs 10 per share. The amount was payable as follows:
On Application − Rs 4 per share (including Rs 2 premium)
On Allotment − Rs 5 per share (including Rs 2 premium)
On First call − Rs 5 per share (including Rs 3 premium)
On Second and final call − Balance amount
The issue was fully subscribed. Raghu, a shareholder holding 1000 shares, failed to pay the allotment money and Rahim, another shareholder holding 1500 shares, paid his entire share money along with allotment. Raghu's shares were forfeited immediately after allotment. Afterwards, the first call was made Deenanath, a shareholder holding 500 shares, failed to pay the first call money and Dayal, a shareholder holding 600 shares, paid his second call money along with the first call. Deenanath's shares were forfeited immediately after the first call. Later on the second call was made which was duly received.
Pass necessary journal entries for the above transactions in the books of BBG Ltd.
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उत्तर
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Journal |
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|
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
Bank A/c (2,00,000 × 4) |
Dr. |
|
8,00,000 |
|
|
|
To Equity Share Application A/c |
|
|
|
8,00,000 |
|
|
(Received application money on 2,00,000 shares) |
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|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Application A/c |
Dr. |
|
8,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
4,00,000 |
|
|
To Securities Premium Reserve A/c |
|
|
|
4,00,000 |
|
|
(Transfer of application money to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Allotment A/c (2,00,000 × 5) |
Dr. |
|
10,00,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
6,00,000 |
|
|
To Securities Premium Reserve A/c |
|
|
|
4,00,000 |
|
|
(Allotment due on 2,00,000 shares ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (1,99,000 × 5) + (1,500 × 11) |
Dr. |
|
10,11,500 |
|
|
|
To Equity Share Allotment A/c (1,99,000 ×5) |
|
|
|
9,95,000 |
|
|
To Calls-in-Advance A/c (1,500 × 11) |
|
|
|
16,500 |
|
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c (1,000 × 5) |
Dr. |
|
5,000 |
|
|
|
Securities Premium Reserve A/c (1,000 × 2) |
Dr. |
|
2,000 |
|
|
|
To Equity Share Allotment A/c (1,000 × 5) |
|
|
|
5,000 |
|
|
To Equity Share Forfeiture A/c (1,000 × 2) |
|
|
|
2,000 |
|
|
(Forfeiture of 1,000 shares for non-payment of allotment money including premium of Rs 2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share First Call A/c (1,99,000 × 5) |
Dr. |
|
9,95,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
3,98,000 |
|
|
To Securities Premium Reserve A/c |
|
|
|
5,97,000 |
|
|
(Call money due on 1,99,000 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (1,98,500 × 5) − 7,500 + 3,600 |
Dr. |
|
9,88,600 |
|
|
|
Calls-in-Advance A/c (1,500 × 5) |
Dr. |
|
7,500 |
|
|
|
To Calls-in-Advance A/c (600 × 6) |
|
|
|
3,600 |
|
|
To Equity Share First Call A/c |
|
|
|
9,92,500 |
|
|
(Received call money) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Capital A/c (500 × 7) |
Dr. |
|
3,500 |
|
|
|
Securities Premium Reserve A/c (500 × 3) |
|
|
1,500 |
|
|
|
To Equity Share First Call A/c (500 × 5) |
|
|
|
2,500 |
|
|
To Equity Share Forfeiture A/c (500 × 5) |
|
|
|
2,500 |
|
|
(Forfeiture of 500 shares for non-payment of call money) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Share Second and Final Call A/c (1,98,500 × 6) |
Dr. |
|
11,91,000 |
|
|
|
To Equity Share Capital A/c |
|
|
|
5,95,500 |
| To Securities Premium A/c | 5,95,500 | ||||
|
|
(Call money due on 1,98,500 shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
11,78,400 |
|
|
|
Calls-in-Advance A/c (9,000 + 3,600) |
|
|
12,600 |
|
|
|
To Equity Share Second and Final Call A/c |
|
|
|
11,91,000 |
|
|
(Received call money on shares) |
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APPEARS IN
संबंधित प्रश्न
Joshi - Patil Ltd. issued 2,000, 10% debentures of Rs. 100 each, payable Rs. 20 on application and the balance on allotment. Company received applications for 2,500 debentures, out of which applications for 2,000 were alloted fully and remaining applications were rejected and the money refunded.
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Calculate goodwill of the firm on Kishore's admission and the new profit sharing ratio of Karan, Varun and Kishore. Also, pass necessary Journal Entry for the treatment of Goodwill on Kishore's admission considering that Kishore did not bring his share of goodwill premium in Cash.
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On Application − Rs 3 per share
On Allotment − Rs 4 per share
On First and find call − Balance amount
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| Category | No. of Shares Applied | No. of Shares Allotted |
| I | 30,000 | 15,000 |
| II | 18,000 | 5,000 |
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Pass necessary journal entries for the above transactions in the books of Joy Ltd.
From the following Statement of Profit and Loss of Navratan Ltd. for the year ended 31st March, 2013, prepare a Comparative Statement of Profit and Loss:
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2011 – 12 Rs |
| Revenue from operations | 8,05,000 | 6,14,000 | |
| Other Incomes | 43,000 | 51,000 | |
| Expenses | 5,59,000 | 4,88,000 |
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Narain Laxmi Ltd. invited applications for issuing 7500, 12% Debentures of Rs100 each at a premium of Rs 35 per Debenture. The full amount was payable on application.
Applications were received for 10,000 Debentures. Applications for 2500 Debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants.
Pass necessary Journal Entries for the above transactions in the books of Narain Laxmi Ltd.
Shakti Ltd. decided to redeem its 750, 12% Debentures of Rs 100 each. The company purchased 500 Debentures at Rs 94 per Debenture from the open market. The remaining debentures were redeemed out of profits. The company had already made a provision for Debenture Redemption Reserve in its books.
Pass necessary Journal Entries in the books of the company for the above transactions.
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Pass necessary Journal entries for the following transaction in the books of Fortune Ltd:
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DN Ltd. issued 50,000 shares of Rs 10 each at a discount of 10% payable as Rs 2 per share on application Rs 3 on allotment and Rs 2 each on first and final call. Applications were received for 70,000 shares. It was decided that
(a) Refuse allotment to the applicants of 10,000 shares,
(b) Allot 10,000 shares to Mohan who had applied for a similar number, and
(c) Allot the remaining share on a pro-rata basis.
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Answer in a sentence only.
What is meant by ‘Issue of debenture at discount and redeemable at premium’?
Select most appropriate alternative from those given below :
The issue of debentures less than the face value is called ___________.
State to whether the following statement is True/False.
The issue of debentures less than face value of debenture to termed as issue of debentures at discount.
State to whether the following statement is True/False.
The issue of debenture more than face value is termed on issue of debentures at par.
State to whether the following statement is True/False.
Premium on issue of debentures is recorded on the asset side of balance sheet.
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On Application Rs 40
On Allotment Rs 55
Show journal entries assuming that all the installments were duly collected. Also show the relevant portion of the balance sheet.
Amar Ltd. purchased assets of the book value of Rs 99,000 from Abhi Ltd. It was agreed that purchase consideration to be paid by issuing 11% Debentures of Rs 100 each Assume debentures have been issued.
1. At par
2. At Discount of 10% and
3. At Premium of 10%
Record necessary journal entries
BGP Ltd. invited applications for issuing 15,000, 11% debentures of ₹ 100 each at a premium of ₹ 50 per debenture. The full amount was payable on application. Applications were received for 25,000 debentures. Applications for 5,000 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants on a pro-rata basis.
Pass the necessary journal entries for the above transactions in the books of BGP Ltd.
Suhas Ltd. issued 1,000, 7% Debentures of ₹ 100 each to be redeemed after three years at a premium of 5%. The face value of the debentures was payable as:
₹ 20 on Application
₹ 30 on Allotment (on 1st May, 2020)
₹ 30 on First call (on 1st October, 2020)
₹ 20 on Final call (on 1st January, 2021)
All the debentures were applied and allotted.
Ali, to whom 20 debentures were allotted, paid the allotment money and the two calls on 31st March, 2021. The Articles of Association of the company provided for interest on calls-in-arrear to be charged @ 10% per annum, which Ali paid on 31st March, 2021.
You are required to pass journal entries in the books of Suhas Ltd. to record:
- The adjustment and receipt of interest on calls in arrears
- The entry to close the interest on calls in arrears account
As per Companies Act 2013, Securities Premium Balance can be utilised for which of the following purpose?
Pass necessary journal entries for the issue of debentures in the following cases:
- Issued 50,000, 9% debentures of ₹ 100 each at par redeemable at par.
- Issued 10,000, 8% debentures of ₹ 100 each at 7% premium redeemable at par.
- Issued 750, 8% debentures of ₹ 100 each at 10% discount redeemable at par.
- Issued 1,000, 9% debentures of ₹ 100 each at 5% premium redeemable at 8% premium.
- Issued 500, 9% debentures of ₹ 100 each at 10% discount redeemable at 10% premium.
Pass necessary journal entries for the issue of debentures in the following cases :
- Issued ₹ 75,00,000, 9% debentures of ₹100 each at a premium of 10% redeemable at a premium of 5% after 3 years.
- Issued 8,000, 9% debentures of ₹100 each at a discount of 6% redeemable at a premium of 3% after 5 years.
- Issued 90,000, 9% debentures of ₹100 each at par, redeemable at par after 4 years.
Pass necessary journal entries for the issue of debentures in the following cases :
- Issued ₹ 7,00,000, 9% debentures of ₹ 100 each at a premium of 20% redeemable at a premium of 10% after 6 years.
- Issued 10,000, 12% debentures of ₹ 100 each at 10% discount redeemable at a premium of 5% after 5 years.
- Issued 75,000, 12% debentures of ₹ 100 each at par, redeemable at premium of 10% after three years.
Which of the following statement is incorrect with respect to debentures?
Chiranjeevi Limited issued 2,000, 10% debentures of ₹ 100 each. Pass the necessary Journal entries for the issue of debentures in the following cases:
- When debentures were issued at 10% premium, redeemable at 5% premium.
- When debentures were issued at 5% discount, redeemable at 10% premium.
- When debentures were issued at par, redeemable at a premium of 10%
On 1st April 2022, Galaxy ltd. had a balance of ₹8,00,000 in Securities Premium account. During the year company issued 20,000 Equity shares of ₹10 each as bonus shares and used the balance amount to write off Loss on issue of Debenture on account of issue of 2,00,000, 9% Debentures of ₹100 each at a discount of 10% redeemable @ 5% Premium. The amount to be charged to Statement of P & L for the year for Loss on issue of Debentures would be:
On July 01, 2022, Panther Ltd. issued 20,000, 9% Debentures of ₹ 100 each at 8% premium and redeemable at a premium of 15% in four equal instalments starting from the end of the third year. The balance in Securities Premium on the date of issue of debentures was ₹ 80,000. Interest on debentures was to be paid on March 31 every year.
Pass Journal entries for the financial year 2022-23. Also prepare Loss on Issue of Debentures account.
Xylo Ltd. issued 9,000, 7% Debentures of ₹ 100 each at a certain rate of discount. After writing off the discount on the issue of debentures, the company was left with a balance of ₹ 35,000 in its Securities Premium out of the original amount of ₹ 71,000.
At what rate of discount did the company issue these Debentures?
The following balances have been extracted from the books of Nirvana Ltd, as at 31st March, 2024:
| Particulars | (₹) | Particulars | (₹) |
| Security deposit for electricity for ten years | 30,000 | Uncalled amount on partly paid-up shares | 8,00,000 |
| Underwriting commission | 20,000 | 10% Debentures | 5,00,000 |
| General Reserve | 70,000 | Statement of P/L (Dr.) | 10,000 |
| Fixed Deposits | 2,00,000 | Calls-in arrears @ ₹ 1 per share | 40,000 |
| Premium on redemption of Debentures | 20,000 | Securities Premium | 2,00,000 |
| Equity Share Capital (1,00,000 shares of ₹ 10 each) |
10,00,000 |
You are required to show the above items in Notes to Accounts accompanying the Balance Sheet of Nirvana Ltd. prepared as per Schedule III of the Companies Act 2013 as at 31st March, 2024.
