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प्रश्न
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.
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उत्तर
| Journal Entry | ||||
| Date | Particulars | L.F. | Debit Amount (₹) | Credit Amount (₹) |
| (a) | ||||
| Bank A/c ...Dr. | 42,000 | |||
| To Debenture Application and Allotment A/c | 42,000 | |||
| (Being 400 debentures issued at ₹ 100 at a premium of 5%) | ||||
| Debenture Application A/c ...Dr. | 42,000 | |||
| To 12% Debenture A/c | 40,000 | |||
| To Securities Premium A/c | 2,000 | |||
| (Being 400 debentures issued at a premium of 5% and redeemable at par) | ||||
| (b) | ||||
| Bank A/c ...Dr. | 73,500 | |||
| To Debenture Application A/c | 73,500 | |||
| (Being 700 debentures issued at Rs 100 at a premium of 5%) | ||||
| Debenture Application A/c ...Dr. | 73,500 | |||
| Loss on Issue of Debentures A/c ...Dr. | 7,000 | |||
| To 12% Debenture A/c | 70,000 | |||
| To Securities Premium A/c | 3,500 | |||
| To Premium on Redemption A/c | 7,000 | |||
| (Being 70,000 debentures issued at a premium of 5% and redeemable at Rs 110) | ||||
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संबंधित प्रश्न
Short Answer Question
What is discount on issue of debentures?
Nipa Limited issued ₹ 10,00,000 Debentures of ₹ 100 each at a premium of 10% , payable 25% on application (including premium) and the balance on allotment . The debentures were applied for and the amount was dully received.
You are required to give Journal entries and prepare Cash Book.
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.
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 premium of 25% as purchase consideration.
Record necessary journal entries in the books of Romi Ltd.
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.
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.
Garvit Ltd. invited applications for issuing 3,000, 11% Debentures of ₹ 100 each at a discount of 6%. The full amount was payable on application. Applications were received for 3,600 debentures. Applications for 600 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants. Pass the necessary journal entries for the above transactions in the books of Garvit Ltd.
Discount on issue of debentures is shown under the following head in the Balance Sheet?
Which of the following situations are commonly found in practice during the issue and redemption of debentures?
A debenture is a ______.
Which of the following is true with regard to 10% Debentures issued at a discount of 20%?
Loss on issue of debentures is treated as ______.
Interest on debentures is calculated on ______.
Assertion (A): Sarita Pvt. Ltd. issued 15% 10,000 debentures at par @ ₹ 100 per debenture. The company suffered a loss but still the directors of the company paid interest on debentures.
Reason (R): Interest on debenture is a charge against profits and therefore, its payment is not subject to the earning of profit.
Which of the following is not a source of cash?
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).
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.
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%.
