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प्रश्न
Green Ltd. purchased the assets of Strong Ltd. for ₹ 40,00,000 and took over liabilities of ₹ 7,00,000 for ₹ 32,40,000. Payment was made by issuing 10% Debentures of ₹ 100 each at a discount of 10%. Pass the necessary Journal entries in the books of Green Ltd.
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उत्तर
| Journal Entries In the Books of Green Ltd. |
||||
|---|---|---|---|---|
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
| 1. | Sundry Assets A/c ...Dr. | 40,00,000 | ||
| To Sundry Liabilities A/c | 7,00,000 | |||
| To Strong Ltd. A/c | 32,40,000 | |||
| To Capital Reserve A/c | 60,000 | |||
| (Assets and liabilities of Strong Ltd. taken over for a purchase consideration of ₹ 32,40,000) | ||||
| 2. | Strong Ltd. A/c ...Dr. | 32,40,000 | ||
| Discount on Issue of Debentures A/c ...Dr. | 3,60,000 | |||
| To 10% Debentures A/c | 36,00,000 | |||
| (36,000, 10% Debentures of ₹ 100 each issued at 10% discount in payment of purchase consideration) | ||||
Working note:
Net Assets taken over:
₹ 40,00,000 − ₹ 7,00,000 = ₹ 33,00,000
Purchase Consideration:
₹ 32,40,000
Therefore, Capital Reserve:
₹ 33,00,000 − ₹ 32,40,000 = ₹ 60,000
Issue price of each ₹ 100 Debenture at 10% discount:
₹ 100 − ₹ 10 = ₹ 90
Number of Debentures issued:
`(32,40,000)/90 = 36,000` Debentures
Face value of Debentures:
36,000 × ₹ 100 = ₹ 36,00,000
Discount on Issue of Debentures:
₹ 36,00,000 − ₹ 32,40,000 = ₹ 3,60,000
संबंधित प्रश्न
What is meant by ‘Issue of debentures for Consideration other than Cash’?
What accounting treatment is given to the issue of debentures in the books of accounts?
Long Answer Question
Explain the different terms for the issue of debentures with reference to their redemption.
B. Ltd. issued 1,000, 12% debentures of Rs 100 each on April 01, 2014, at a discount of 5% redeemable at a premium of 10%.
Give journal entries relating to the issue of debentures and debenture interest for the period ending March 31, 2015, assuming that interest is paid half-yearly on September 30 and March 31, and tax deducted at source is 10%.
Alka Ltd. issued 5,000, 10% Debentures of ₹ 1,000 each at a discount of 10% redeemable after 5 years. According to the terms of issue, ₹ 500 (after discount of ₹ 50) was payable on application and the balance amount on allotment of debentures. Record necessary entries regarding issue of 10% Debentures.
Footfall Ltd. issues 10,000 Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 5% after the expiry of three years.
Pass Journal entries for the issue of these debentures.
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.
On 1st April, 2015, V.V.L.Ltd issued 1,000, 9% Debentures of ₹ 100 each at a discount of 6%, redeemable at a premium of 10% after three years. Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31st March, 2016, assuming that interest is payable on 30th September and 31st March and the rate of tax deducted at source is 10%. The company closes its books on 31st March every year.
On 1st June, 2017, R Energy Ltd. issued 10,000, 7% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% at the end of five years. All the debentures were subscribed and allotment was made.
Prepare the Balance Sheet (extract) as at 31st March, 2018.
Office Products Ltd, issued on 1st April, 2018, 20,000, 9% Debentures of ₹ 100 each at a premium of 10% redeemable at a premium of 5% after 5 years. Issue price was payable along with application. Pass the necessary Journal entries.
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"
Debenture holders are ______.
Assertion (A): Issue of debenture does not result in dilution of interest of equity shareholders.
Reason (R): Debenture holders have voting rights.
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 ______.
Debenture holders are the ______.
Debenture is ______.
A company can issue debentures:
