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On 1st June, 2025, R Energy Ltd. issued 10,000, 7% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% at the end of five years. All the debentures were subscribed

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प्रश्न

On 1st June, 2025, R Energy Ltd. issued 10,000, 7% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% at the end of five years. All the debentures were subscribed and allotment was made.

Prepare the Balance Sheet (extract) as at 31st March, 2026.

खाता बही
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उत्तर

Particulars Note No. Amount (₹)
EQUITY AND LIABILITIES    
Non-Current Liabilities    
Long-term Borrowings 1 10,00,000
Other Non-current Liabilities 2 1,00,000
ASSETS    
Non-Current Assets    
Other Non-current Assets 3 1,66,667

 

Particulars Amount (₹)
Long-term Borrowings:  
10,000, 7% Debentures of ₹100 each 10,00,000
Other Non-current Liabilities:  
Premium on Redemption of Debentures 1,00,000
Other Non-current Assets:  
Loss on Issue of Debentures ₹ 2,00,000 Less: Written off ₹ 33,333 1,66,667

Working Note:

Face value of Debentures:

10,000 × ₹ 100 = ₹ 10,00,000

Discount on Issue:

₹ 10,00,000 × 10% = ₹ 1,00,000

Premium on Redemption:

₹ 10,00,000 × 10% = ₹ 1,00,000

Total Loss on Issue:

₹ 1,00,000 + ₹ 1,00,000 = ₹ 2,00,000

Annual amount to be written off:

₹ 2,00,000 ÷ 5 = ₹ 40,000

For 10 months, from 1st June 2025 to 31st March 2026:

₹ 40,000 × `10/12` = ₹ 33,333

Unwritten Loss on Issue:

₹ 2,00,000 − ₹ 33,333 = ₹ 1,66,667

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अध्याय 9: Issue of Debentures - Exercise [पृष्ठ ५७]

APPEARS IN

टीएस ग्रेवाल Accountancy Double Entry Book Keeping Volume 1 and 2 [English] Class 12
अध्याय 9 Issue of Debentures
Exercise | Q 47 | पृष्ठ ५७
टीएस ग्रेवाल Accountancy Double Entry Book Keeping Volume 1 and 2 [English] Class 12
अध्याय 9 Issue of Debentures
EXERCISE | Q 57. | पृष्ठ ९.८७

संबंधित प्रश्न

B. Ltd. purchased assets of the book value of Rs. 4,00,000 and took over the liability of Rs. 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at Rs. 3,80,000, be paid by issuing debentures of Rs 100 each.

What Journal entries will be made in the following three cases, if debentures are issued: (a) at par; (b) at discount; (c) at a premium of 10%? It was agreed that any fraction of debentures be paid in cash.

(Note: Goodwill Rs. 30,000)


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.


ABC Ltd. issued 40,000; 10% Debentures of ₹ 100 each at par for cash payable in full along with the application. Applications  were received for 60,000 debentures . Debentures were allotted and excess application money was refunded. Pass Journal entries in the books of the company. 


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.


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 discount of 10% as purchase consideration.
Record necessary journal entries in the books of Romi Ltd.


Exe Ltd. purchased the assets of the book value  ₹4,00,000 and took over the liabilities of ₹ 50,000 from Mohan Bros.It was agreed that the  purchase consideration ,settled at  ₹3,80,000 be paid by issuing debentures  of ₹ 100 each.
Pass journal entries if debenture are issued: 
(a) at par
(b) at a discount of 10% and
(c) at a premium of 10%.
It was agreed that any fraction of debentures be paid in cash.


Journalise the following:
(a) A debenture issued at ₹95, repayable at ₹ 100.
(b) A debenture issued at ₹95, repayable at ₹ 105.
(c) A debenture issued at ₹95, repayable at ₹ 105.
The face value of debenture is  ₹ 100 in each of the above cases.


Office Products Ltd, issued on 1st April, 2018, 20,000, 9% Debentures of ₹ 100 each at a premium of 10% redeemable at a premium of 5% after 5 years. Issue price was payable along with application. Pass the necessary Journal entries.


Discount on issue of debentures is shown under the following head in the Balance Sheet?


When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to ______.


Premium on redemption is shown under which head until debentures are redeemed?


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"


The loss on issue of Debentures is written-off from ______.


Pick the odd one out:


Debenture holders are ______.


Debentures are considered as ______ equity.


Assertion (A): Issue of debenture does not result in dilution of interest of equity shareholders.

Reason (R): Debenture holders have voting rights.


Discount on issue of debentures is a ______


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