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Journalise the Following Transaction at the Time of Issue of 12% Debentures: - Accountancy

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प्रश्न

Journalise the following transaction at the time of issue of 12% Debentures:
Nandan Ltd. issued ₹90,000, 12% Debentures of ₹ 100 each at a discount of 5% redeemable at 110%.

रोजनामा प्रविष्टि
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उत्तर

Journal

Date

Particulars

L.F.

Debit

Amount

(₹)

Credit

Amount

(₹)

 

Bank A/c

Dr.

 

85,500

 

    To Debenture Application and Allotment A/c

 

 

 

85,500

  (Money received on the issue of debentures)

 

 

 

 

   

 

 

 

 

  Debenture Application and Allotment A/c

Dr.

 

85,500

 

  Loss on Issue of Debentures A/c

Dr.

 

13,500

 

    To 12% Debentures A/c

 

 

 

90,000

    To Premium on Redemption of Debentures A/c

 

 

 

9,000

  (Debenture application and allotment money transferred to Debentures A/c)

 

 

 

 

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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 37 | पृष्ठ ५६

संबंधित प्रश्न

Short Answer Question

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


Long Answer Question

How is ‘Discount on Issue of Debentures’ treated in the books of accounts? How will you deal with the ‘discount in issue of debentures’ when the debentures are to be redeemed in instalments?


X Ltd . issued 12,000; 8% Debentures of ​₹  100 each at a discount of 5% payable as 25% on application;20% on allotment and balance after three months.
Pass Journal entries. 


Newton Ltd. purchased a Machinery from B for ​₹  5,76,000 to be paid by the issue of 9% Debentures of ​₹  100 each at 4% discount. Journalise the trasactions.


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. 


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%. 


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. 


Kitply Ltd.issued  ₹ 2,00,000, 10% Debentures  at a discount of 5% .The terms of issue provide the repayment at the end of 4 years . Kitply Ltd.has a balance of ₹ 5,00,000 in Securities Premium Reserve . The company decided to write off  discount on issue of debentures from Securities Premium Reserve in the first year.
Pass the journal entry.


A limited company issued ₹ 1,00,000, 9% Debentures at a discount of 6% on 1st April, 2017. These debentures are to be redeemed equally, spread over 5 annual instalments.

Pass the Journal entries for issue of debentures and writing off the discount.


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.


On 1st April, 2017, Solar Power Ltd. issued 10,000, 8% Debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 15% at the end of five years. All the debentures were subscribed and allotment was made. The company had balance in Securities Premium Reserve of ₹ 80,000.
Prepare the Balance Sheet (extract) as at 31st March, 2018.


Fill in the blank.
For recording the issue of debentures as collateral security by a journal entry _______ account is debited.


Which of the following situations are commonly found in practice during the issue and redemption of debentures?


Which of the following is true with regard to 10% Debentures issued at a discount of 20%?


Debentures are considered as ______ equity.


Interest on Debentures is a charge against ______.


Debenture premium cannot be used to ______.


Premium received on issue of debentures may be utilised for:


Madhur Ltd. has outstanding 9% debentures of Rs. 50,00,000 redeemable at par on January 01, 2020. Debenture Redemption Reserve of Rs. 2,00,000 on March 31, 2018 and balance of the required amount of DRR was created on March 31, 2019. The company invested in specified securities (DRI) the required amount on April 01, 2019. Debentures were redeemed on the due date. Record necessary journal entries in the books of the company and also prepare the ledger accounts (ignore interest).


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