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प्रश्न
Grown Ltd. issued 500, 10% Debentures of ₹ 1,000 each credited as fully paid-up to the promoters for their services to incorporate the company. It also issued 100, 10% Debentures of ₹ 1,000 each credited as fully paid-up to the underwriters towards their commission. Pass the Journal entries.
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उत्तर
In the books of Grown Ltd.
Journal
|
Date |
Particulars |
|
L.F. |
Debit |
Credit |
|
|
Incorporation Expenses A/c |
Dr. |
5,00,000 |
|
|
|
|
To Promoters A/c |
|
|
5,00,000 |
|
|
|
(Being amount due to promoters for their services) |
|
|
|
|
|
|
|
|
|
||
|
|
Promoters A/c |
Dr. |
5,00,000 |
|
|
|
|
To 10% Debentures A/c (500 × 1,000) |
|
|
5,00,000 |
|
|
|
(Being 500, 10% debentures issued as purchase consideration) |
|
|
|
|
|
|
|
|
|
||
|
|
Underwriting Commission A/c |
Dr. |
1,00,000 |
|
|
|
|
To Underwriters A/c |
|
|
1,00,000 |
|
|
|
(Being amount due to underwriters for their services) |
|
|
|
|
|
|
|
|
|
||
|
|
Underwriters A/c |
Dr. |
1,00,000 |
|
|
|
|
To 10% Debentures A/c (100 × 1,000) |
|
|
1,00,000 |
|
|
|
(Being 100, 10% debentures issued as purchase consideration) |
|
|
|
|
|
|
|
|
|
||
|
|
Statement of Profit and Loss A/c |
Dr. |
6,00,000 |
|
|
|
|
To Incorporation Expenses A/c |
|
|
5,00,000 |
|
|
|
To Underwriting Commission A/c |
|
|
1,00,000 |
|
|
|
(Being expenses transferred to statement of profit and loss at the end of year) |
|
|
|
संबंधित प्रश्न
Long Answer Question
Explain the different terms for the issue of debentures with reference to their redemption.
A. Ltd. issued 50,00,000, 8% Debentures of Rs 100 at a discount of 6% on April 01, 2009, redeemable at a premium of 4% by draw of lots as under:
20,00,000 Debentures on March, 2011
10,00,000 Debentures on March 2013
20,00,000 Debentures on March 2014
Compute the amount of discount to be written off in each year till debentures are paid. Also prepare the discount/loss on the issue of the debenture account.
Wye Ltd . purchased an established business for ₹ 2,00,000 payable as ₹ 65,000 by cheque and the balance by issuing 9% Debentures of ₹ 100 each at a discount of 10%.
Give journal entries in the books of Wye Ltd.
Romi Ltd. acquired assets of ₹ 20 lakhs and took over creditors of ₹ 2 lakhs from Kapil Enterprises.
Romi Ltd. issued 8% Debentures of ₹ 100 each at a discount of 10% as purchase consideration.
Record necessary journal entries in the books of Romi Ltd.
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.
Wellbeing Ltd. took over assets of ₹ 9,80,000 and liabilities of ₹ 40,000 of HDR Ltd. at an agreed value of ₹ 9,00,000. Wellbeing Ltd. paid to HDR Ltd. by issue of 9% Debentures of ₹ 100 each at a premium of 20%. Pass necessary Journal entries to record the above transactions in the books of Wellbeing Ltd.
Pass journal entries in the following cases:
(a) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 5% redeemable at par.
(b) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 10% redeemable at par.
(c) A Co.Ltd. issued ₹40,000; 12% Debentures at par redeemable at 10% premium.
(d) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 5% and redeemable at 5% premium.
(e) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 10% redeemable at 110%.
Debentures which are transferable by mere delivery are ______.
The word 'debenture' has been derived from which Latin word (which means to borrow)?
The debentures are issued with a specified rate of interest, which is called the coupon rate are known as which types of debentures?
Which of the following. column indicated in·the statement given below is to be credited?
"Writing off the loss on issue of debentures"
When the debenture of face value of ₹ 100 is issued at ₹ 100 is called, issue off debenture at ______.
Assertion (A): Debentures saves income tax.
Reason (R): Interest on debenture is tax deductible expenditure.
Loss on issue of debentures is treated as ______.
Which of the following is not a characteristic of Bearer Debentures?
10% Debenture issued at ₹ 105 is repayable at ₹ 110, the face value of the debenture being ₹ 100. Calculate the amount of loss on redemption of debentures.
Interest on debentures is calculated on ______.
Assertion (A): Sarita Pvt. Ltd. issued 15% 10,000 debentures at par @ ₹ 100 per debenture. The company suffered a loss but still the directors of the company paid interest on debentures.
Reason (R): Interest on debenture is a charge against profits and therefore, its payment is not subject to the earning of profit.
MK Ltd. has outstanding Rs. 30,000 11% debentures of Rs. 100 each redeemable at 10% premium as follows:
| March 31, 2018 - | 10,000 debentures |
| March 31, 2019 - | 12,000 debentures |
| March 31, 2020 - | Remaining debentures |
Pass necessary journal entries in the books of the company.
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:
- Debentures are issued at par and redeemable at par.
- Debentures are issued at a premium of 10% and redeemable at par.
- Debentures are issued at a discount of 10% and redeemable at par.
- Debenture are issued at par but redeemable at a premium of 10%.
- Debentures are issued at a premium of 10% and redeemable at premium of 10%.
- Debenture are issued at a discount of 10% and redeemable at a premium of 10%.
