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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 an ‘Irredeemable Debenture’?
What accounting treatment is given to the issue of debentures in the books of accounts?
Long Answer Question
Explain the different terms for the issue of debentures with reference to their redemption.
A company issues the following debentures:
- 10,000 12% debentures of Rs. 100 each at par but redeemable at a premium of 5% after 5 years;
- 10,000 12% debentures of Rs. 100 each at a discount of 10% but redeemable at par after 5 years;
- 5,000 12% debentures of Rs. 1,000 each at a premium of 5% but redeemable at par after 5 years;
- 1,000 12% debentures of Rs. 100 each issued to a supplier of machinery costing Rs. 95,000. The debentures are repayable after 5 years and
- 300 12% debentures of Rs. 100 each as collateral security to a bank that has advanced a loan of Rs. 25,000 to the company for a period of 5 years.
Pass the journal entries to record the: (a) issue of debentures, and (b) repayment of debentures after the given period.
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.
Raj Ltd . issued 5,000; 8% Debentures of ₹ 100 each at a premium of 5% payable as follows:
₹ 10 on application ; ₹ 20 along with premium on allotment and balance on first and final call.
Pass necessary Journal entries.
X Ltd . issued 12,000; 8% Debentures of ₹ 100 each at a discount of 5% payable as 25% on application;20% on allotment and balance after three months.
Pass Journal entries.
Pass necessary Journal entries relating to the issue of debentures for the following:
(a) Issued ₹ 4,00,000; 9% Debentures of ₹ 100 each at a premium of 8% redeemable at 10% premium.
(b) Issued ₹ 6,00,000; 9% Debentures of ₹ 100 each at par, repayable at a premium of 10%.
(c) Issued ₹ 10,00,000; 9% Debentures of ₹ 100 each at a premium of 5%, redeemable at par.
Pass necessary Journal entries relating to the issue of debentures for the following:
(a) Issued ₹ 28,000; 10% Debentures of ₹ 100 each at a premium of 15% redeemable at par.
(b) Issued ₹ 30,000; 10% Debentures of ₹ 100 each at a premium of 10% and redeemable at a premium of 15%.
(c) Issued ₹ 80,000; 10% Debentures of ₹ 100 each at par repayable at a premium of 10%.
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.
X Co. Ltd. purchased assets worth Rs.28,80,000. It issued debentures of Rs. 100 each at a discount of 4 per cent in full satisfaction of the purchase consideration. The number of debentures issued to vendor is ______.
Discount on issue of debentures is shown under the following head in the Balance Sheet?
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"
Loss on Issue of Debenture Account is shown:
Debentures are considered as ______ equity.
Debenture premium cannot be used to ______.
Madhur Ltd. has outstanding 9% debentures of Rs. 50,00,000 redeemable at par on January 01, 2020. Debenture Redemption Reserve of Rs. 2,00,000 on March 31, 2018 and balance of the required amount of DRR was created on March 31, 2019. The company invested in specified securities (DRI) the required amount on April 01, 2019. Debentures were redeemed on the due date. Record necessary journal entries in the books of the company and also prepare the ledger accounts (ignore interest).
MK Ltd. has outstanding Rs. 30,000 11% debentures of Rs. 100 each redeemable at 10% premium as follows:
| March 31, 2018 - | 10,000 debentures |
| March 31, 2019 - | 12,000 debentures |
| March 31, 2020 - | Remaining debentures |
Pass necessary journal entries in the books of the company.
XYZ Ltd. Issued 6,000, 12% Debentures of ? 50 each on April 1, 2014. Interest on these debenture is payable annually 3151 March each year. The debentures are redeemable in four equal installments at end of third, fourth, fifth and sixth year. You are required to pan journal entries at the time of issue and redemption of debentures in the books of the company under following cases:
- Debentures are issued at par and redeemable at par.
- Debentures are issued at a premium of 10% and redeemable at par.
- Debentures are issued at a discount of 10% and redeemable at par.
- Debenture are issued at par but redeemable at a premium of 10%.
- Debentures are issued at a premium of 10% and redeemable at premium of 10%.
- Debenture are issued at a discount of 10% and redeemable at a premium of 10%.
