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Global Ltd. Issued 10,000, 8% Debentures of ₹ 100 Each Redeemable in Four Equal Instalments by Draw of Lots from the End of 3 Years at a Premium of ₹ 9. - Accountancy

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प्रश्न

Global Ltd. issued 10,000, 8% Debentures of  ₹ 100 each redeemable in four equal instalments by draw of lots from the end of 3 years at a premium of ₹ 9.
Pass the Journal entries for writing off the Loss on Issue of Debentures. Also prepare Loss on issue of Debentures Account.

रोजनामा प्रविष्टि
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उत्तर

In the books of Raha Ltd.
Journal

Date

Particulars 

 

L.F.

Debit
Amount
(₹)

Credit
Amount
(₹)

By the end of year of Allotment

Statement of Profit & Loss A/c

Dr.

 

90,000

 

  To Loss on Issue of Debentures A/c

 

 

 

90,000

(Being loss on issue of debentures written off)

 

 

 

 

 Loss on Issue of Debentures A/c

Dr.                                                                              Cr.

Date

Particulars

Amount

(₹)

Date

Particulars

Amount

(₹)

On the date of Issue To 8% Debentures A/c

90,000

By the end of Year of allotment By Statement of Profit & Loss A/c

90,000

   

90,000

   

90,000 

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अध्याय 2: Issue of Debentures - Exercise [पृष्ठ ५६]

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टीएस ग्रेवाल Accountancy - Double Entry Book Keeping Volume 2 [English] Class 12
अध्याय 2 Issue of Debentures
Exercise | Q 46 | पृष्ठ ५६

संबंधित प्रश्न

Short Answer Question

State the meaning of ‘Debentures issued as a Collateral Security.


Short Answer Question

What is ‘Capital Reserve’?


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 .  


Alok Ltd. issued 7,000, 10% Debentures of ₹ 500 each at a premium of ₹ 50 per debenture redeemable at a premium of 10% after 5 years. According to the terms of issue, ₹ 200 was payable on application and balance on allotment.
Record necessary Journal entries at the time of issue of 10% Debentures.


Deepak Ltd purchased furniture of ₹ 2,20,000 from M/s. Furniture Mart. 50% of the amount was paid to M/s. Furniture Mart by accepting a bill of exchange and for the balance, the company issued 9% debentures of ​₹ 100 each at a premium of 10% in favor of M/s. Furniture Mart.
Pass Journal entries in the books of Deepak Ltd. 


Exe Ltd. purchased the assets of the book value  ₹4,00,000 and took over the liabilities of ₹ 50,000 from Mohan Bros.It was agreed that the  purchase consideration ,settled at  ₹3,80,000 be paid by issuing debentures  of ₹ 100 each.
Pass journal entries if debenture are issued: 
(a) at par
(b) at a discount of 10% and
(c) at a premium of 10%.
It was agreed that any fraction of debentures be paid in cash.


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.


Pass necessary Journal entries for the issue of debentures in the following cases:

  1. ₹ 40,000; 12% Debentures of  ₹ 100 each issued at a premium of 5% redeemable at par.
  2. ₹ 70,000; 12% Debentures of  ₹ 100 each issued at a premium of 5% redeemable at ₹ 110.

XYZ  Ltd.issued 5,000 , 10% Debentures of  ₹ 100 each on 1st April, 2015 at a discount of 10% redeemable at a premium of 10% after 4 years. Give journal entries for the year ended 31st March, 2016, assuming that the interest was payable  half-yearly on 30th September and 31st March. Tax is to be deducted @ 10%. 


When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to ______.


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"


Debenture interest is paid as ______.


Assertion (A): Issue of debenture does not result in dilution of interest of equity shareholders.

Reason (R): Debenture holders have voting rights.


Assertion (A): Debentures saves income tax.

Reason (R): Interest on debenture is tax deductible expenditure.


Debenture premium cannot be used to ______.


Which of the following statement is true?


Interest on debentures is calculated on ______.


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:

  1. Debentures are issued at par and redeemable at par.
  2. Debentures are issued at a premium of 10% and redeemable at par.
  3. Debentures are issued at a discount of 10% and redeemable at par.
  4. Debenture are issued at par but redeemable at a premium of 10%.
  5. Debentures are issued at a premium of 10% and redeemable at premium of 10%.
  6. Debenture are issued at a discount of 10% and redeemable at a premium of 10%.

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