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प्रश्न
On 1st April 2014, KK Ltd. invited applications for issuing 5,000 10% debentures of Rs 1,000 each at a discount of 6%. These debentures were repayable at the end of the 3rd year at a premium of 10%. Applications for 6,000 debentures were received and the debentures were allotted on pro-rata basis to all the applicants. Excess money received with applications was refunded.
The directors decided to transfer the minimum amount to Debenture Redemption Reserve on 31.3.2016. On 1.4.2016, the company invested the necessary amount in 9% bank fixed deposit as per the provisions of the Companies Act 2013. A tax was deducted at source by bank on interest @10% p.a.
Pass the necessary journal entries for issue and redemption of debentures. Ignore entries relating to writing off a loss on issue of debentures and interest paid on debentures.
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उत्तर
| In the books of KK Ltd. Journal |
||||
| Date | Particulars | L.F |
Dr. Rs |
Cr. Rs |
|
2014 Apr 1
|
Bank A/c Dr. To Debenture Application & Allotment A/c (Being debenture application money received @ Rs 940 on 6,000 debentures) |
56,40,000
|
56,40,000
|
|
|
Apr 1
|
Debenture Application & Allotment A/c Dr. Loss on Issue of Debentures A/c (3,00,000 + 5,00,000) Dr To 10% Debenture A/c To Premium on Redemption of Debenture A/c To Bank A/c (1000*940) (Being debentures allotted at a discount of 6% to be redeemable at a 10% premium. Excess refunded.) |
56,40,000 8,00,000
|
50,00,000 5,00,000 9,40,000
|
|
|
2016 Mar 31 |
Balance in Statement of Profit & Loss A/c Dr To Debenture Redemption Reserve A/c (Being DRR created at 25%) |
12,50,000
|
12,50,000
|
|
|
Apr 1
|
Debenture Redemption Investment A/c Dr. To Bank A/c (Being DRI in 9% Fixed deposit @ 15% of Debenture Face Value) |
7,50,000
|
7,50,000
|
|
|
2017 Mar 31
|
10% Debenture A/c Dr. Premium on Redemption of Debentures A/c Dr. To Debentureholders A/c (Being debenture and premium repayment due) |
50,00,000 5,00,000
|
55,00,000
|
|
|
Mar 31
|
Bank A/c Dr. Income Tax Paid A/c Dr. To Debenture Redemption Investment A/c To Interest on Debenture Redemption Investment A/c (Being DRI matured and 9% Interest received thereon. Tax Deducted at source being 10% of the interest) |
8,10,750 6,750
|
7,50,000 67,500
|
|
| Mar 31 |
Debentureholders A/c Dr. To Bank A/c (Being amount paid to Debentureholders) |
55,00,000
|
55,00,000 | |
|
Mar 31
|
Debenture Redemption Reserve A/c Dr. To General Reserve A/c (Being DRR transferred to General Reserve) |
12,50,000
|
12,50,000
|
|
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संबंधित प्रश्न
Give the meaning of Debenture?
Tata Ltd. issued 5,000, 10% Debentures of Rs 100 each on 1st April 2012. The issue was fully subscribed. According to the terms of issue, interest on debentures is payable half-yearly on 30th September and 31st March and tax deducted at source is 10%.
Pass the necessary journal entries related to the debenture interest for the half-yearly ending on 31st March 2013 and transfer of interest on debentures to Statement of Profit and Loss.
On 1.4.2015 PPR Ltd. issued 1500, 10% debentures of Rs 100 each at a discount of 3%, redeemable at a premium of 8% after three years. The company closes its books on 31st March every year. Interest on 10% debentures is payable on 30th September and 31st March. Rate of tax deducted at source is 10%.
Pass necessary journal entries for the issue of 10% debentures and interest for the year ended 31.3.2016
Give any one advantage for the redemption of debentures by purchase in the open market?
Answer in a sentence only.
What is meant by debenture?
Answer in a sentence only.
What is a ‘Convertible Debenture’?
Answer in a sentence only.
What is meant by ‘Mortgaged Debenture’?
Answer in a sentence only.
What is meant by redemption of Debentures?
Answer in a sentence only.
What is meant by ‘Irredeemable Debentures?
Write one word/term/phrase which can substitute the following
The acknowledgment of debt under common seal of company.
Write one word/term/phrase which can substitute the following
The debentures of which payment is made on the expiry of specific period.
Write one word/term/phrase which can substitute the following
The debentures of which payment is made on the expiry of specific period.
Write one word/term/phrase which can substitute the following
The debentures which are converted in to shares.
Write one word/term/phrase which can substitute the following
The debentures which are registered in the register of company.
Write one word/term/phrase which can substitute the following
The debentures which are transferred by way of delivery.
Select most appropriate alternative from those given below
__________ is acknowledgment of debt under common seal of company.
Select most appropriate alternative from those given below :
The debentures which are converted into shares is called____________.
Select most appropriate alternative from those given below :
The debenture holder is ___________ of the company.
State to whether the following statement is True/False.
The acknowledgement of debt under common seal of company in termed as share.
State to whether the following statement is True/False.
The unregistered debentures are known as naked debentures.
Write a word / term / phrase as a substitute of the following statement.
The acknowledgement of debt under common seal of company.
Give the word / term or phrase which can substitute the following statement.
The debentures which are converted into shares.
Answer the question.
Explain any five types of debentures through which a company can collect borrowed capital from the public.
Write Short Note on Secured Debentures
Explain any four types of debentures through which a public limited company can collect its borrowed capital from the public.
Match the items given in Column I with the headings/subheadings (Balance sheet) as defined in Schedule III of Companies Act 2013.
| Column I | Column II | ||
| (I) | Loose Tools | (a) | Intangible fixed assets |
| (II) | Patents | (b) | Other current assets |
| (III) | Prepaid insurance | (c) | Long term Borrowings |
| (IV) | Debentures | (d) | Inventories |
| (V) | Machinery | (e) | Tangible Fixed assets/Property, Plant and Equipment |
Choose the correct option:
Anthony Ltd. issued 20,000, 9% Debentures of ₹ 100 each at 10% discount to Mithoo Ltd. from whom Assets of ₹ 23,50,000 and Liabilities of ₹ 6,00,000 were taken over. Pass entries in the books of Anthony Ltd. if these debentures were to be redeemed at 5% premium.
