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प्रश्न
On 1st April, 2025, Solar Power Ltd. issued 10,000, 8% Debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 15% at the end of five years. All the debentures were subscribed and allotment was made.
The company had balance in Securities Premium of ₹ 80,000.
Prepare the Balance Sheet (extract) as at 31st March, 2026.
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उत्तर
| In the books of Solar Power Ltd. An Extract of Balance Sheet As at 31st March, 2018 |
||
| Particulars | Note No. |
Amount (₹) |
| I. Equity and liabilities | ||
| 1. Shareholders’ Funds |
||
| Reserves and Surplus | 3 | (1,20,000) |
| 2. Non-Current Liabilities | ||
| a. Long-term Borrowings | 1 | 10,00,000 |
| b. Other long-term | 2 | 1,50,000 |
| II. Assets | ||
| Current Assets | ||
| Cash and Cash Equivalents | 4 | 9,50,000 |
Notes to Accounts:
| Note No. |
Particulars | Amount (₹) | Amount (₹) |
| 1. | Long-term Borrowings | ||
| 10,000, 8% Debentures of ₹100 each issued | 10,00,000 | ||
| 2. | Other long-term Liabilities | ||
| Premium on Redemption of Debentures | 1,50,000 | ||
| 3. | Reserves and Surplusc | ||
| Securities Premium Reserve | 80,000 | ||
| Less: Discount on Issue of Debentures | (50,000) | ||
| Less: Loss on Issue of Debentures written off | (30,000) | ||
| Statement of Profit and Loss | – | ||
| Less: Loss on Issue of Debentures written off | (1,20,000) | (1,20,000) | |
| 4. | Cash and Cash Equivalents | ||
| On 8% debentures @ ₹ 95 each (10,000 × 95) | 9,50,000 |
संबंधित प्रश्न
State the meaning of ‘Debentures issued as Collateral Security’.
What is ‘Capital Reserve’?
What is the discount on the issue of debentures?
What accounting treatment is given to the issue of debentures in the books of accounts?
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.
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.
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.
'Sangam Woollens Ltd.', Ludhiana, are the manufacturers and exporters of woollen garments. The company decided to distribute free of cost woollen garments to 10 villages of Lahaul and Spiti District of Himachal Pradesh. The company also decided to employ 50 young persons from these villages in its newly established factory. The company issued 40,000 Equity Shares of ₹ 10 each and 1,000, 9% Debentures of ₹ 100 each to the vendor for the purchase of machinery of ₹ 5,00,000. Pass necessary Journal entries.
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.
Global Ltd. issued 10,000, 8% Debentures of ₹ 100 each redeemable in four equal instalments by draw of lots from the end of 3 years at a premium of ₹ 9.
Pass the Journal entries for writing off the Loss on Issue of Debentures. Also prepare Loss on issue of Debentures Account.
Which of the following situations are commonly found in practice during the issue and redemption of debentures?
Loss on Issue of Debenture Account is shown:
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 premium cannot be used to ______.
Which of the following statement is true?
Which of the following is false with respect to debentures ?
A company can issue debentures:
X Ltd. had outstanding 20,000 12% debentures of Rs. 100 each redeemable on June 30, 2019. Record necessary journal entries at the time of redemption.
