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Romi Ltd. Acquired Assets of ₹ 20 Lakhs and Took Over Creditors of ₹ 2 Lakhs from Kapil Enterprises. - Accountancy

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प्रश्न

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.

रोजनामा प्रविष्टि
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उत्तर

Books of Romi Ltd.
Journal

 

Date

Particular

L.F.

Debit Amount

Rs

Credit Amount

Rs

 

Assets A/c

Dr.

 

20,00,000

 

 

To Creditors A/c

 

 

2,00,000

 

To Kapil Enterprises

 

 

18,00,000

 

(Asset purchased and Creditors took over from Kapil Enterprises)

 

 

 

 

 

 

 

 

 

Kapil Enterprises A/c

Dr.

 

18,00,000

 

 

To 8% Debentures A/c

 

 

14,40,000

 

To Securities Premium A/c

 

 

3,60,000

 

(Issued 14,400 8% Debentures of Rs 100 each at a premium of 25% to Kapil Enterprises)

 

 

 

Working Note

No.of. debentures to be issued =

`"Purchase Consideration"/ "Issued Price "`

=`1800000/(100 + 25) = 1800000/125`

= 14400 debentures

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अध्याय 2: Issue of Debentures - Exercise [पृष्ठ ५४]

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टीएस ग्रेवाल Accountancy - Double Entry Book Keeping Volume 2 [English] Class 12
अध्याय 2 Issue of Debentures
Exercise | Q 20 | पृष्ठ ५४

संबंधित प्रश्न

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. 


Newton Ltd. purchased a Machinery from B for ​₹  5,76,000 to be paid by the issue of 9% Debentures of ​₹  100 each at 4% discount. Journalise the trasactions.


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.


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%.


Footfall Ltd. issues 10,000 Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 5% after the expiry of three years.
Pass Journal entries for the issue of these debentures.


Pass necessary Journal entries for the issue of debentures in the following cases:

  1. ₹ 40,000; 12% Debentures of  ₹ 100 each issued at a premium of 5% redeemable at par.
  2. ₹ 70,000; 12% Debentures of  ₹ 100 each issued at a premium of 5% redeemable at ₹ 110.

Bright Ltd. issued 5,000; 10% Debentures of  ₹ 100 each on 1st April, 2015 . The issue was fully subscribed . According to the terms of issue, interest on the debentures is payable half-yearly on 30th  September and 31st March and the tax deducted at source is 10%.
Pass necessary journal entries related to the debenture interest for the year ending 31st March , 2016 and transfer of interest on debentures of the year to the Statement of Profit and Loss .


Kitply Ltd.issued  ₹ 2,00,000, 10% Debentures  at a discount of 5% .The terms of issue provide the repayment at the end of 4 years . Kitply Ltd.has a balance of ₹ 5,00,000 in Securities Premium Reserve . The company decided to write off  discount on issue of debentures from Securities Premium Reserve in the first year.
Pass the journal entry.


Which of the following situations are commonly found in practice during the issue and redemption of debentures?


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 debentures are issued with a specified rate of interest, which is called the coupon rate are known as which types of debentures?


Which of the following. column indicated in·the statement given below is to be credited?

"Writing off the loss on issue of debentures"


Assertion (A): Debentures saves income tax.

Reason (R): Interest on debenture is tax deductible expenditure.


Which of the following statement is true?


Discount on issue of debentures is a ______


Loss on issue of debentures is treated as ______.


Which of the following is false with respect to debentures ?


A Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of B Ltd. for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 15% debentures of ₹ 100 each at 10% discount. The number of debentures to be issued is:


Interest on debentures is calculated on ______.


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