Advertisements
Advertisements
प्रश्न
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.
Advertisements
उत्तर
| In the books of MK limited | ||||
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
| 2017 | ||||
| Apr. 30 | Debenture Redemption Investment A/c ...Dr. | 1,50,000 | ||
| To Bank A/c | 1,50,000 | |||
| (Being amount invested) | ||||
| 2018 | ||||
| Mar. 31 | 11% Debenture A/c ...Dr. | 10,00,000 | ||
| Premium on redemption A/c ...Dr. | 1,00,000 | |||
| To Debenture holder | 11,00,000 | |||
| (Being amount transferred to debenture holder) | ||||
| Mar. 31 | Debenture holder A/c ...Dr. | 11,00,000 | ||
| To Bank A/c | 11,00,000 | |||
| (Being amount paid to debenture holder) | ||||
| Apr. 30 | Debenture Redemption Investment A/c ...Dr. | 30,000 | ||
| To Bank A/c | 30,000 | |||
| (Being received amount invested) | ||||
| 2019 | ||||
| Mar. 31 | 11% Debenture A/c ...Dr. | 12,00,000 | ||
| Premium on redemption A/c ...Dr. | 1,20,000 | |||
| To Debenture holder A/c | 13,20,000 | |||
| (Being amount transfer to debenture holder) | ||||
| Mar. 31 | Debenture holder A/c ...Dr. | 13,20,000 | ||
| To Bank A/c | 13,20,000 | |||
| (Being amount paid to debenture holder) | ||||
| Apr. 30 | Bank A/c ...Dr. | 60,000 | ||
| To Debenture Redemption Investment | 60,000 | |||
| (Being investment sold) | ||||
| 2020 | ||||
| Mar. 31 | Bank A/c ...Dr. | 1,20,000 | ||
| To Debenture Redemption Investment | 1,20,000 | |||
| (Being investment sold) | ||||
| Mar. 31 | 11% Debenture A/c ...Dr. | 8,00,000 | ||
| Premium on redemption | 80,000 | |||
| To Debenture holder A/c | 8,80,000 | |||
| (Being amount transfer to debenture holder) | ||||
| Mar. 31 | Debenture holder A/c ...Dr. | 8,80,000 | ||
| To Bank A/c | 8,80,000 | |||
| (Being amount paid to debenture holder) | ||||
APPEARS IN
संबंधित प्रश्न
What is the discount on the issue of debentures?
B. Ltd. purchased assets of the book value of Rs. 4,00,000 and took over the liability of Rs. 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at Rs. 3,80,000, be paid by issuing debentures of Rs 100 each.
What Journal entries will be made in the following three cases, if debentures are issued: (a) at par; (b) at discount; (c) at a premium of 10%? It was agreed that any fraction of debentures be paid in cash.
(Note: Goodwill Rs. 30,000)
A company issues the following debentures:
- 10,000 12% debentures of Rs. 100 each at par but redeemable at a premium of 5% after 5 years;
- 10,000 12% debentures of Rs. 100 each at a discount of 10% but redeemable at par after 5 years;
- 5,000 12% debentures of Rs. 1,000 each at a premium of 5% but redeemable at par after 5 years;
- 1,000 12% debentures of Rs. 100 each issued to a supplier of machinery costing Rs. 95,000. The debentures are repayable after 5 years and
- 300 12% debentures of Rs. 100 each as collateral security to a bank that has advanced a loan of Rs. 25,000 to the company for a period of 5 years.
Pass the journal entries to record the: (a) issue of debentures, and (b) repayment of debentures after the given period.
B. Ltd. issued debentures at 94% for Rs 4,00,000 on April 01, 2011 repayable by five equal drawings of Rs 80,000 each. The company prepares its final accounts on March 31 every year.
Indicate the amount of discount to be written-off every accounting year assuming that the company decides to write-off the debentures discount during the life of debentures. (Amount to be written-off: 2012 Rs 8,000; 2013 Rs 6,400; 2014 Rs 4,800; 2015 Rs 2,000; 2016 Rs 1,600).
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%.
ABC Ltd. issued 40,000; 10% Debentures of ₹ 100 each at par for cash payable in full along with the application. Applications were received for 60,000 debentures . Debentures were allotted and excess application money was refunded. Pass Journal entries in the books of the company.
Vijay Laxmi Ltd. invited applications for 10,000; 12% Debentures of ₹ 100 each at a premium of ₹ 70 per debenture .The full amount was payable on application.
Applications were received for 13,500 debentures. Applications for 3,500 debentures were rejected and application money was refunded . Debentures were allotted to the remaining applications .
Bright Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of Star Ltd. for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 12% Debentures of ₹ 100 each. Give necessary Journal entries in the books of Bright Ltd., assuming that:
Case (a): The debentures are issued at par.
Case (b): The debentures are issued at 20% premium.
Case (c): The debentures are issued at 10% discount.
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.
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.
Journalise the following:
(a) A debenture issued at ₹95, repayable at ₹ 100.
(b) A debenture issued at ₹95, repayable at ₹ 105.
(c) A debenture issued at ₹95, repayable at ₹ 105.
The face value of debenture is ₹ 100 in each of the above cases.
Pass necessary Journal entries for the issue of Debentures in the following cases:
(a) ₹ 40,000; 15% Debentures of ₹ 100 each issued at a discount of 10% redeemable at par.
(b) ₹ 80,000; 15% Debentures of ₹ 100 each issued at a premium of 10% redeemable at a premium of 10%.
Bright Ltd. issued 5,000; 10% Debentures of ₹ 100 each on 1st April, 2015 . The issue was fully subscribed . According to the terms of issue, interest on the debentures is payable half-yearly on 30th September and 31st March and the tax deducted at source is 10%.
Pass necessary journal entries related to the debenture interest for the year ending 31st March , 2016 and transfer of interest on debentures of the year to the Statement of Profit and Loss .
Fill in the blank.
For recording the issue of debentures as collateral security by a journal entry _______ account is debited.
Discount on issue of debentures is shown under the following head in the Balance Sheet?
The debentures are issued with a specified rate of interest, which is called the coupon rate are known as which types of debentures?
Loss on Issue of Debenture Account is shown:
Interest on Debentures is a charge against ______.
Debenture holders are the ______.
A company can issue debentures:
