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प्रश्न
Health2Wealth Ltd. had share capital of ₹ 80,00,000 divided in shares of ₹ 100 each and 20,000, 8% Debentures of ₹ 100 each as part of capital employed. The company need additional funds of ₹ 55,00,000 for which they decided to issue debentures in such a way that they got required funds after issuing debentures of the same class as earlier, at 10% premium. These debentures were to be redeemed at 20% premium after 4 years. These debentures were issued on 01 October, 2021.
You are required to
- Pass entries for issue of Debentures.
- Prepare Loss on Issue of Debentures Account assuming there was existing balance of Securities Premium Account of ₹ 2,80,000.
- Pass entries for Interest on debentures on March 31, 2022 assuming interest is payable on 30 September and 31 March every year.
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उत्तर
| Journal Entries | ||||
| In the books of Health2Wealth Ltd. | ||||
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
| 01-10-2021 | Bank A/c ...Dr. | 55,00,000 | ||
| To 8% Debentures A/c | 50,00,000 | |||
| To Securities Premium A/c | 5,00,000 | |||
| (Being debentures issued at 10% premium) | ||||
| 01-10-2021 | Loss on Issue of Debentures A/c ...Dr. | 10,00,000 | ||
| To Premium on Redemption of Debentures A/c | 10,00,000 | |||
| (Being premium payable on redemption) | ||||
| 01-10-2021 | Securities Premium A/c ...Dr. | 2,80,000 | ||
| Profit & Loss A/c ...Dr. | 2,20,000 | |||
| To Loss on Issue of Debentures A/c | 5,00,000 | |||
| (Being loss on issue written off) | ||||
| 31-03-2022 | Interest on Debentures A/c ...Dr. | 2,00,000 | ||
| To Interest on Debentures Payable A/c | 2,00,000 | |||
| (Being interest accrued for half-year) | ||||
| 31-03-2022 | Profit & Loss A/c ...Dr. | 2,00,000 | ||
| To Interest on Debentures A/c | 2,00,000 | |||
| (Being transfer to Profit & Loss Account | ||||
Working Notes:
1) Number of Debentures Issued
Required funds = ₹ 55,00,000
Issue price per debenture = ₹ 100 + 10% premium
= ₹ 110
Number of debentures = `5500000/110`
= 50,000 debentures
2) Amount Details
| Particulars | Amount (₹) |
| Face value (50,000 × 100) | 50,00,000 |
| Premium on issue (10%) | 5,00,000 |
| Premium on redemption (20%) | 10,00,000 |
3) Loss on Issue of Debentures
Loss=Premium on Redemption−Premium on Issue
= 10,00,000 − 5,00,000
= ₹ 5,00,000
Existing Securities Premium balance = ₹ 2,80,000
Balance transferred to P&L = ₹ 2,20,000
4) Interest on Debentures
Rate of interest = 8% p.a.
Face value of debentures = ₹ 50,00,000
Annual interest:
50,00,000 × 8%
= ₹ 4,00,000
`=400000/2`
= ₹ 2,00,000
संबंधित प्रश्न
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Journalise the above transactions, assuming that all the sums were received.
Pass necessary journal entries in the given cases :
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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
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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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| Particulars | Note No. | 2012 – 13 Rs |
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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Pass necessary Journal Entries for the above transactions in the books of Narain Laxmi Ltd.
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Answer in a sentence only.
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Write one word/term/phrase which can substitute the following
The debentures where a charge is created on the assets of company.
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The issue of debenture more than face value is termed on issue of debentures at par.
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Pass necessary journal entries in the books of Vimal Ltd. for the above transactions.
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Pass Journal entries for the financial year 2022-23. Also prepare Loss on Issue of Debentures account.
On 1st April, 2023, Ruth Ltd. purchased Plant and Machinery for ₹ 11,00,000 from Pablo Ltd. payable as to ₹ 1,00,000 by accepting a promissory note and the balance by an issue of 11% Debentures of ₹ 100 each at a premium of 10% to be redeemed at a premium of 2 % after six years. You are required to pass journal entries in the books of Ruth Ltd. only to record the payment made to Pablo Ltd.
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.
