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प्रश्न
Nipa Limited issued 10,000 Debentures of ₹ 100 each at a premium of 10%, payable 30% of nominal (facе) value on application (including premium) and the balance on allotment. The debentures were applied for and the amount was duly received.
You are required to give Journal entries and prepare Cash Book.
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उत्तर
| Journal Entries In the Books of Nipa Limited |
||||
|---|---|---|---|---|
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
| 1. | Bank A/c ...Dr. | 3,00,000 | ||
| To Debentures Application A/c | 3,00,000 | |||
| (Application money received on 10,000 debentures) | ||||
| 2. | Debentures Application A/c ...Dr. | 3,00,000 | ||
| To Debentures A/c | 2,00,000 | |||
| To Securities Premium A/c | 1,00,000 | |||
| (Application money transferred, including premium of ₹ 10 per debenture) | ||||
| 3. | Debentures Allotment A/c ...Dr. | 8,00,000 | ||
| To Debentures A/c | 8,00,000 | |||
| (Allotment money due @ ₹ 80 per debenture) | ||||
| 4. | Bank A/c ...Dr. | 8,00,000 | ||
| To Debentures Allotment A/c | 8,00,000 | |||
| (Allotment money received) | ||||
Working note:
Face value of debentures:
10,000 × ₹ 100 = ₹ 10,00,000
Premium @ 10%:
10,000 × ₹ 10 = ₹ 1,00,000
Application money: 30% of face value, including premium
10,000 × ₹ 30 = ₹ 3,00,000
Out of ₹ 30 application money:
Premium = ₹ 10, Capital = ₹ 20
Therefore, capital received on application:
10,000 × ₹ 20 = ₹ 2,00,000
Balance payable on allotment:
₹ 110 − ₹ 30 = ₹ 80 per debenture
10,000 × ₹ 80 = ₹ 8,00,000
संबंधित प्रश्न
State the meaning of ‘Debentures issued as Collateral Security’.
What is ‘Capital Reserve’?
Journalise the following:
(i) A debenture issued at Rs. 95, repayable at Rs. 100;
(ii) A debenture issued at Rs. 95, repayable at Rs. 105; and
(iii) A debenture issued at Rs. 100, repayable at Rs. 105;
The face value of the debenture in each of the above cases is Rs. 100.
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.
Narain Laxmi Ltd. invited applications for issuing 7,500; 12% Debentures of ₹ 100 each at a premium of ₹ 35 per debenture. The issue price was payable on application. Issue was subscribed and allotment was made.
Pass necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd.
The Amrit Ltd was promoted by Amrit and Bhaskar with an authorised capital of ₹ 10,00,000 divide into 1,00,000 shares of ₹ 10 each.
The company decided to issue 1,000 6% Debentures of ₹ 100 each to Amrit and Bhaskar, each for their services in incorporating the company.
Pass journal entry.
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.
Pass necessary Journal entries for the issue of debentures in the following cases:
- ₹ 40,000; 12% Debentures of ₹ 100 each issued at a premium of 5% redeemable at par.
- ₹ 70,000; 12% Debentures of ₹ 100 each issued at a premium of 5% redeemable at ₹ 110.
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%.
Debentures which are transferable by mere delivery are ______.
When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to ______.
A debenture is a ______.
Loss on Issue of Debenture Account is shown:
Debenture interest is paid as ______.
Pick the odd one out:
Rehana, Shakina and Jasmine are partners. They share When debentures are issued as collateral security, the final entry for recording the transaction in the books is ______.
Debenture holders are ______.
Which of the following statement is true?
Which of the following is false with respect to debentures ?
