Advertisements
Advertisements
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.
Advertisements
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
APPEARS IN
संबंधित प्रश्न
State the meaning of ‘Debentures issued as Collateral Security’.
What is meant by ‘Issue of debenture at discount and redeemable at premium’?
What accounting treatment is given to the issue of debentures in the books of accounts?
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 .
Iron Products Ltd. issued 5,000; 9% Debentures of ₹ 100 each at a premium of ₹ 40 payable as follows;
(i) ₹ 40 , including premium of ₹ 10 on applications;
(ii) ₹ 45, including premium of ₹ 15 on allotment ; and
(iii) Balance as first and final call.
The issue was subscribed and allotment made. Calls were made and due amount was received .
Pass Journal entries .
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.
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 premium of 25% as purchase consideration.
Record necessary journal entries in the books of Romi Ltd.
Pass journal entries in the following cases:
(a) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 5% redeemable at par.
(b) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 10% redeemable at par.
(c) A Co.Ltd. issued ₹40,000; 12% Debentures at par redeemable at 10% premium.
(d) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 5% and redeemable at 5% premium.
(e) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 10% redeemable at 110%.
The word 'debenture' has been derived from which Latin word (which means to borrow)?
Which of the following situations are commonly found in practice during the issue and redemption of debentures?
Which of the following given statement is correct.
Statement 1 - "Debenture is written instrument acknowledging a debt under the common seal of the company"
Statement 2 - Debenture is oral instrument acknowledging a debt under the common seal of the company"
Which of the following given statement is correct.
Statement 1 - "Shares cannot be converted into debentures whereas debentures can be converted into shares"
Statement 2 - "Shares can be converted into debentures whereas debentures cannot be converted into shares"
Debenture interest is paid as ______.
The loss on issue of Debentures is written-off from ______.
Interest on Debentures is a charge against ______.
Debenture premium cannot be used to ______.
Pick the odd one out.
A Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of B Ltd. for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 15% debentures of ₹ 100 each at 10% discount. The number of debentures to be issued is:
10% Debenture issued at ₹ 105 is repayable at ₹ 110, the face value of the debenture being ₹ 100. Calculate the amount of loss on redemption of debentures.
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).
