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प्रश्न
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%.
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उत्तर
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
(a) |
Bank A/c |
Dr. |
|
42,000 |
|
|
|
To 12% Debenture Application A/c |
|
|
42,000 |
|
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Debenture Application A/c |
Dr. |
|
42,000 |
|
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
|
To Securities Premium A/c |
|
|
2,000 |
|
|
|
(Debenture application money transferred to 12% Debentures account and securities premium account) |
|
|
|
|
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
(b) |
Bank A/c |
Dr. |
|
36,000 |
|
|
|
To 12% Debenture Application A/c |
|
|
36,000 |
|
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Debenture Application A/c |
Dr. |
|
36,000 |
|
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
4,000 |
|
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
|
(Debentures of Rs 40,000 issued at 10% discount) |
|
|
|
|
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
(c) |
Bank A/c |
Dr. |
|
40,000 |
|
|
|
To 12% Debenture Application A/c |
|
|
40,000 |
|
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Debenture Application A/c |
Dr. |
|
40,000 |
|
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
4,000 |
|
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
|
To Premium on Redemption A/c |
|
|
4,000 |
|
|
|
(Debentures of Rs 40,000 issued at par with the term repayable at 10% premium) |
|
|
|
|
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
(d) |
Bank A/c |
Dr. |
|
38,000 |
|
|
|
To 12% Debenture Application A/c |
|
|
38,000 |
|
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
38,000 |
|
|
|
Discount on Issue of Debenture A/c |
Dr. |
|
2,000 |
|
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
2,000 |
|
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
|
To Premium on Redemption A/c |
|
|
2,000 |
|
|
|
(Debentures of Rs 40,000 issued at 5% discount with the term repayable at 5% premium) |
|
|
|
|
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
(e) |
Bank A/c |
Dr. |
|
44,000 |
|
|
|
To 12% Debenture Application A/c |
|
|
44,000 |
|
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Debenture Application A/c |
Dr. |
|
44,000 |
|
| Loss on Issue of Debentures A/c | Dr. | 4,000 | |||
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
|
To Securities Premium A/c |
|
|
4,000 |
|
| To Premium on Redemption A/c | 4,000 | ||||
|
|
(Debenture of Rs 40,000 issued at 10% premium with the term payable at 10% premium) |
|
|
|
|
APPEARS IN
संबंधित प्रश्न
What is meant by ‘Issue of debenture at discount and redeemable at premium’?
Short Answer Question
What is discount on issue of debentures?
Long Answer Question
Explain the different terms for the issue of debentures with reference to their redemption.
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 premium of 10%? It was agreed that any fraction of debentures be paid in cash.
Journalise the following:
(i) A debenture issued at Rs 95, repayable at Rs 100;
(ii) A debenture issued at Rs 95, repayable at Rs 105; and
(iii) A debenture issued at Rs 100, repayable at Rs 105;
The face value of debenture in each of the above cases is Rs 100.
Vishwas Ltd. issued 2,000; 9% Debentures of ₹ 100 each payable as follows:
₹ 25 on application; ₹ 25 on allotment and ₹ 50 on first and final call.
Applications were received for all the debentures along with the application money did allotment was made . Call money was also received on the due date.
Pass necessary Journal entries in the books of the company.
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.
Alok Ltd. issued 7,000, 10% Debentures of ₹ 500 each at a premium of ₹ 50 per debenture redeemable at a premium of 10% after 5 years. According to the terms of issue, ₹ 200 was payable on application and balance on allotment.
Record necessary Journal entries at the time of issue of 10% Debentures.
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 .
Alka Ltd . issued 5,000, 10% Debentures of ₹ 1,000 each at a discount of 10% redeemable at a premium of 5% after 5 years . According to the terms of issue ₹ 500 was payable on application and the balance amount on allotment of debentures. Record necessary entries regarding issue of 10% Debentures.
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.
On 1st January, 2017, Raha Ltd. issued 6,000, 8% Debentures of nominal (face) value of ₹ 100 each redeemable at 5% premium in equal proportions at the end of 5, 10 and 15 years. It has a balance of ₹ 10,000 in Securities Premium Reserve.
Pass Journal entries. Also give Journal entries for writing off Loss on Issue of Debentures.
Fill in the blank.
For recording the issue of debentures as collateral security by a journal entry _______ account is debited.
Loss on Issue of Debenture Account is shown:
The loss on issue of Debentures is written-off from ______.
Which of the following is true with regard to 10% Debentures issued at a discount of 20%?
Assertion (A): Debentures saves income tax.
Reason (R): Interest on debenture is tax deductible expenditure.
Debenture premium cannot be used to ______.
Which of the following is false with respect to debentures ?
Maximum limit on premium on issue of debentures is ______.
