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प्रश्न
On 1st April 2015, Mayfair Ltd. issued 4,000 9% debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 8%. The debentures were redeemable on 31st March 2019. The company created the necessary minimum amount of debenture redemption reserve and purchased the required amount of debenture redemption investments as per the provisions of Companies Act, 2013.
Pass the necessary journal entries for the redemption of debentures.
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उत्तर
In the books of Mayfair Ltd.
Journal
| Date | Particulars | L.F. |
Debit Amount(₹) |
Credit Amount(₹) |
|
| 2018 |
|
|
|||
| March 31 | Surplus i.e. Balance as per Statement of Profit & Loss A/c | Dr. |
1,00,000 |
|
|
| To Debenture Redemption Reserve A/c |
|
1,00,000 |
|||
| Being 25% of 4,000 debentures transferred to DRR) |
|
|
|||
|
|
|
||||
| 2018 April 30 |
Debenture Reserve Investment A/c | Dr. |
60,000 |
|
|
| To Bank A/c |
|
60,000 |
|||
| (Being Debenture Redemption Investment made at 15% for 4,000 debentures ) |
|
|
|||
|
|
|
||||
| 2019 March 31 |
Bank A/c | Dr. |
60,000 |
|
|
| To Debenture Reserve Investment A/c |
|
60,000 |
|||
| (Being debenture reserve securities matured) |
|
|
|||
|
|
|
||||
| 2019 March 31 |
9% Debenture A/c | Dr. |
4,00,000 |
|
|
| Premium on Redemption A/c | Dr. |
32,000 |
|
||
| To Debenture holder’s A/c |
|
4,32,000 |
|||
| (For amount due on debenture holders) |
|
|
|||
|
|
|
||||
| 2019 March 31 |
Debenture holders A/c | Dr. |
4,32,000 |
|
|
| To Bank A/c |
|
4,32,000 |
|||
|
|
(For debentures paid) |
|
|
||
|
|
|
|
|||
|
2019 March 31 |
Debenture Redemption Reserve A/c | Dr. |
1,00,000 |
|
|
| To General Reserve A/c |
|
1,00,000 |
|||
|
|
(For DRR transferred to General reserve) |
|
|
संबंधित प्रश्न
What is meant by redemption of debentures?
What is meant by redemption of debentures out of Capital?
Explain the guidelines of SEBI for creating the Debenture Redemption Reserve.
Describe the steps for creating a sinking fund for the redemption of debentures.
Can a company purchase its own debentures in the open market? Explain.
A company issued debentures of the face value of Rs 5,00,000 at a discount of 6% on April 01, 2012. These debentures are redeemable by annual drawings of Rs,1,00,000 made on March 31 each year. The directors decided to write off discount based on the debentures outstanding each year.
Calculate the amount of discount to be written-off each year. Give journal entries also.
A company issued 10% Debentures of the face value of Rs,1,20,000 at a discount of 6% on April 01, 2011. The debentures are payable by annual drawings of Rs 40,000 commencing from the end of third year.
How will you deal with discount on debentures?
Show the discount on debentures account in the company ledger for the period of duration of debentures. Assume accounts are closed on March 31 every year.
Krishna Ltd. had outstanding 20,000, 9% debentures of ₹ 100 each on 1st April 2014. These debentures were redeemable at a premium of 10% in two equal installments starting from 31st March 2018. The company had a balance of ₹ 4,00,000 in Debenture Redemption Reserve on 31st March 2017. Pass necessary journal entries for the redemption of debentures in the books of Krishna Ltd. for the year ended 31st March 2018.
Convertible debentures cannot be issued at a discount if ______.
Own debentures are those debentures of the company which ______.
Profit on cancellation of own debentures is transferred to ______.
Which of the following methods are there for redemption of debentures?
Which of the following given statement is correct.
Statement 1 - "Bond and debentures are same in terms of contents and texture."
Statement 2 - "Bond and debentures are not same in terms of contents and texture."
Consider the following statements.
Statement 1 - "No DRR is required for debentures issued by All India Financial Institutions, regulated by RBI and Banking Companies for both public as well as privately placed debentures".
Statement 2 - DRR is required for debentures issued by All India Financial Institutions, regulated by RBI and Banking Companies for both public as well as privately placed debentures"
Debentures can be redeemed out of:
Premium on Redemption of Debentures Account is a ______.
Sources of finance for the redemption of debentures are ______.
