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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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Answer in a sentence only.
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Select most appropriate alternative from those given below :
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Pass necessary journal entries for the issue of debentures in the following cases :
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Pass necessary journal entries for the issue of debentures in the following cases :
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