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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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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
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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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Shares of Gupta were also forfeited after the first and final call. The forfeited shares were reissued at Rs 12 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of Joy Ltd.
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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.
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Pass necessary Journal Entries for the above transactions in the books of Narain Laxmi Ltd.
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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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Write one word/term/phrase which can substitute the following
The issue of debentures more than face value of debentures
Select most appropriate alternative from those given below :
The issue of debentures less than the face value is called ___________.
Select most appropriate alternative from those given below :
The issue of debentures more than face value is called___________.
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.
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3. At Premium of 10%
Record necessary journal entries
Hero Ltd. purchased plant and machinery for ₹ 18,00,000 from Pearl Machines Ltd. payable ₹ 3,00,000 by drawing a promissory note and the balance by the issue of 9% debentures of ₹ 100 each at a premium of 20%.
Pass the necessary journal entries in the books of Hero Ltd. for the above transactions.
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.
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Agam Ltd. issued 40,000 9% debentures of ₹ 100 each on April 1, 2018, at a discount of 10%, redeemable at a premium of 10%. Assuming that the interest was paid half-yearly on September 30 and March 31 and the tax deducted at source was 10%, give journal entries relating to debenture interest for the half-year ended March 31, 2019.
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
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₹ 30 on First call (on 1st October, 2020)
₹ 20 on Final call (on 1st January, 2021)
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- The adjustment and receipt of interest on calls in arrears
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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.
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- 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?
Alexa Ltd. purchased building from Siri Ltd for ₹ 8,00,000. The consideration was paid by issue of 6% debentures of ₹ 100 each at a discount of 20%. The 6% Debentures account is credited with ______.
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.
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.
