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प्रश्न
Tata Motors Ltd. issued 40,000;7% Debentures of ₹ 100 each on 1st July,2009 redeemable at premium of 5% as under:
On 31st March,2015 16,000 Debentures
On 31st March,2016 16,000 Debentures
On 31st March,2017 8,000 Debentures
It was decided to transfer amount out of profit to Debentures Redemption Reserve ₹ 2,00,000 on 31st March, 2012; ₹ 4,00,000 on 31st March , 2013 and balance on 31st March, 2014. It invested the required amount in terms of the Companies Act, 2013 in Government Securities and decided to realise them after last redemption . Paas journal entries ignoring interest .
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उत्तर
Books of Tata Motors Ltd.
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
2009 |
|
|
|
|
||
|
July 01 |
Bank A/c |
Dr. |
|
40,00,000 |
|
|
|
|
To Debenture Application A/c |
|
|
40,00,000 |
||
|
|
(Debenture application money received) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Debenture Application A/c |
Dr. |
|
40,00,000 |
|
|
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
2,00,000 |
|
|
|
|
To 7% Debentures A/c |
|
|
40,00,000 |
||
|
|
To Premium on Redemption A/c |
|
|
2,00,00 |
||
|
|
(40,000 7% Debenture of Rs 100 each issued) |
|
|
|
||
|
|
|
|
|
|
||
|
2012 |
|
|
|
|
||
|
March 31 |
Statement of Profit and Loss |
Dr. |
|
2,00,000 |
|
|
|
|
To Debenture Redemption Reserve A/c |
|
|
2,00,000 |
||
|
|
(Surplus amount is transferred to Debenture Redemption Reserve) |
|
|
|
||
|
|
|
|
|
|
||
|
2013 |
|
|
|
|
||
|
March 31 |
Statement of Profit and Loss |
Dr. |
|
4,00,000 |
|
|
|
|
To Debenture Redemption Reserve A/c |
|
|
4,00,000 |
||
|
|
(Surplus amount is transferred to Debenture Redemption Reserve) |
|
|
|
||
|
|
|
|
|
|
||
|
2014 |
|
|
|
|
||
|
March 31 |
Statement of Profit and Loss |
Dr. |
|
4,00,000 |
|
|
|
|
To Debenture Redemption Reserve A/c |
|
|
4,00,000 |
||
|
|
(Surplus amount is transferred to Debenture Redemption Reserve) |
|
|
|
||
|
|
|
|
|
|
||
|
April 30 |
Debenture Redemption Investment A/c |
Dr. |
|
2,40,000 |
|
|
|
|
To Bank A/c |
|
|
2,40,000 |
||
|
|
(Investment is made in specified securities equal to 15% of the value of debentures redeemed on March 31, 2014) |
|
|
|
||
|
2015 |
|
|
|
|
||
|
March 31 |
7% Debenture A/c |
Dr. |
|
16,00,000 |
|
|
|
|
Premium on Redemption A/c |
Dr. |
|
80,000 |
|
|
|
|
To Debentureholders’ A/c |
|
|
16,80,000 |
||
|
|
(16,000 7% Debenture of Rs 100 each due for redemption along 5% Premium on redemption) |
|
|
|
||
|
|
|
|
|
|
||
|
March 31 |
Debenture holders |
Dr. |
|
16,80,000 |
|
|
|
|
To Bank A/c |
|
|
16,80,000 |
||
|
|
(Amount paid to debenture holders) |
|
|
|
||
| March 31 |
Debenture Redemption Reserve A/c Dr. |
4,00,000 | ||||
| To General Reserve | 4,00,000 | |||||
| (Debenture Redemption Reserve transferred to General Reserve) | ||||||
| April 30 | Debenture Redemption Investment A/c Dr. | 2,40,000 | ||||
| To Bank A/c | 2,40,000 | |||||
| (Investment is made in specified securities equal to 15% of the value of debentures redeemed on March 31, 2015) | ||||||
|
|
|
|
|
|
||
|
2016 |
|
|
|
|
||
|
March 31 |
7% Debenture A/c |
Dr. |
|
16,00,000 |
|
|
|
|
Premium on Redemption of Debentures A/c |
Dr. |
|
80,000 |
|
|
|
|
To Debenture holders |
|
|
16,80,000 |
||
|
|
(16,000 7% Debentures of Rs 100 each due for redemption along with 5% premium on redemption) |
|
|
|
||
|
|
|
|
|
|
||
|
March 31 |
Debentureholders’ A/c |
Dr. |
|
16,80,000 |
|
|
|
|
To Bank A/c |
|
|
16,80,000 |
||
|
|
(Amount paid to debenture holders) |
|
|
|
||
| March 31 |
Debenture Redemption Reserve A/c Dr. |
4,00,000 | ||||
| To General Reserve | 4,00,000 | |||||
| (Debenture Redemption Reserve transferred to General Reserve) | ||||||
| April 30 | Debenture Redemption Investment A/c Dr. | 1,20,000 | ||||
| To Bank A/c | 1,20,000 | |||||
| (Investment is made in specified securities equal to 15% of the value of debentures redeemed on March 31, 2016) | ||||||
|
|
|
|
|
|
||
|
2017 |
|
|
|
|
||
|
March 31 |
7% Debenture A/c |
Dr. |
|
8,00,000 |
|
|
|
|
Premium on Redemption of Debentures A/c |
Dr. |
|
40,000 |
|
|
|
|
To Debenture holders |
|
|
8,40,000 |
||
|
|
(8,000 7% Debentures of Rs 100 each due for redemption along with 5% premium on redemption) |
|
|
|
||
|
|
|
|
|
|
||
|
March 31 |
Debentureholders’ A/c |
Dr. |
|
8,40,000 |
|
|
|
|
To Bank A/c |
|
|
8,40,000 |
||
|
|
(Payment made to debenture holders) |
|
|
|
||
|
|
|
|
|
|
||
|
March 31 |
Bank A/c |
Dr. |
|
6,00,000 |
|
|
|
|
To Debenture Redemption Investment A/c |
|
|
6,00,000 |
||
|
|
(Investment made in securities, now encashed) |
|
|
|
||
|
|
|
|
|
|
||
|
March 31 |
Debenture Redemption Reserve A/c |
Dr. |
|
2,00,000 |
|
|
|
|
To General Reserve A/c |
|
|
2,00,000 |
||
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
||
Working Note:
WN 1 Calculation of amount of DRR
| Amount for DRR (25 % of Debentures Issued) `= 40,00,000 xx 25/100` = | Rs 10,00,000 |
| Less : Amount transferred in 2012 | Rs 2,00,000 |
| Less : Amount transferred in 2013 | Rs 4,00,000 |
| Amount transferred in 2014 | Rs 4,00,000 |
APPEARS IN
संबंधित प्रश्न
X Ltd. had Rs 10,00,00 9% debentures due to be redeemed out of profits on 1st October 2009 at a premium of 5%. The company had a
Debentures Redemption Reserve of Rs 4,14,000. Pass necessary journal entries at the time of redemption.
| On 31st March, 2018, W Ltd. had the following balances in its books: | ₹ |
| 9% Debentures | 6,00,000 |
| Debentures Redemption Reserve | 50,000 |
| Surplus,i.e., Balance in Statement of Profit and Loss | 3,00,000 |
On that date, the company decided to transfer ₹ 1,00,000 to Debentures Redemption Reserve. It also decided to redeem debentures of ₹ 3,00,000 on 30th June, 2018.
Pass necessary Journal entries in the books of the company.
India Textiles Corporation Ltd. has outstanding ₹ 50,00,000; 9% Debentures of ₹ 100 each due for redemption on 31st July, 2019. Pass Journal entries for redemption assuming that there is a balance of ₹ 3,00,000 in Debentures Redemption Reserve on the date of redemption.
Godrej Ltd. has 20,000; 7% Debentures of ₹ 100 each due for redemption on 31st August, 2018. There is a balance of ₹ 3,50,000 in Debentures Redemption Reserve Account as on 31st March, 2016. Investment, as required by the Companies Act, 2013 is made on 1st April, 2017 in fixed deposit bearing interest @ 6% p.a. Bank deducted TDS @ 10% on its maturity which is 31st March, 2018.
Pass Journal entries for redemption of debentures.
Mahima Ltd.issued ₹ 38,00,000, 9% Debentures of ₹ 100 each on 1st April, 2013. The debentures were redeemable at a premium of 5% on 30th June, 2015. The company transferred an amount of ₹ 9,50,000 to Debentures Redemption Reserve on 31st March, 2015. Investments as required by law were made in fixed deposit of a bank on 1st April, 2015.
Ignoring interest on fixed deposit ,pass necessary journal entries starting from 31st March, 2015 regarding redemption of debentures .
On 1st April, 2013 the following balances appeared in the books of Blue and Green Ltd.:
12%Debentures (Redeemable on 31st August, 2015)
₹ 20,00,000
Debentures Redemption Reserve ₹ 2,00,000.
The company met the requirements of Companies Act, 2013 regarding Debentures Redemption Reserve and Debentures Redemption Investments and redeemed the debentures.
Ignoring interest on investments, pass necessary journal entries for the above transactions in the books of company.
Hp Ltd. has 1,00,000;8% Debentures of ₹ 50 each due for redemption in five equal annual installments starting from 30th June, 2015. Debentures Redemption Reserve has a balnce of ₹ 5,00,000 on that date . Pass journal entries.
'Ananya Ltd.' had an authorised capital of ₹ 10,00,00,000 divided into 10,00,000 equity shares of ₹ 100 each. The company had already issued 2,00,000 shares. The dividend paid per share for the year ended 31st March,2007 was ₹ 30 . The management decided to export its products to African countries . To meet the requirements of additional funds, the finance manager put up the following three alternate proposals before the Board of Directors:
(a) Issue 47,500 equity shares at a premium of ₹ 100 per share .
(b) Obtain a long-term loan from bank which was available at 12% per annum.
(c) Issue 9% Debentures at a discount of 5%.
After evaluating these alternatives , the company decided to issue 1,00,000,9% Debentures on 1st April,2008. The face value of each debentures was ₹ 100 . These debentures were redeemable in four installments starting from the end of third year, which were as follows:
| Year | III | IV | V | VI |
| Amount (₹) | 10,00,000 | 20,00,000 | 30,00,000 | 40,00,000 |
Prepare 9% Debenture Account form 1st April, 2008 till all the debentures were redeemed.
Shahi Ltd. decided to redeem its 8,000, 11% debentures of ₹ 100 each at a premium of 10%. The minimum amount transferred to the debenture redemption reserve will be:
No debenture redemption reserve is required for debentures issued by ______.
Fill in the blank.
The portion of uncalled capital to be called only in the event of winding up of the company is called ____________.
What is the maximum amount of debentures which an unlisted company, other than a NBFC and HFC, can redeem out of its capital?
Jerome Ltd., an unlisted manufacturing company, had 20,000, 6% Debentures of ₹100 each due for redemption at par on 31st March, 2022. On this date the company had the required amount of ₹ 2,00,000 in its Debenture Redemption Reserve.
The Debenture Redemption Investment which was purchased on 30th April, 2021, was realised at 98% on the date of redemption and the debentures were redeemed on the due date.
You are required to pass journal entries in the books of the company for the year 2021-22. (Ignore interest on debentures).
On 1st April, 2017, Gabriel Ltd., a listed company, issued 3,000, 8% Debentures of ₹ 100 each. One-third of the Debentures were redeemed at par on 31st March, 2021 and the remaining two-third on 31st March, 2022. The company paid interest on debentures annually on 31st March.
After meeting the requirements of the Companies Act, 2013, regarding Debenture Redemption Investment, the company redeemed the debentures.
You are required to record necessary journal entries in the books of the company only on 31st March, 2022; including entries for interest on debentures.
On 1st April, 2022, Resorts Ltd. (a listed construction company) had 60,000, 5% Debentures of ₹100 each due for redemption at par on 31st March, 2023.
As per the law, investment was made in a fixed deposit of a bank on 30th April, 2022, earning interest @5% per annum.
Tax @10% was deducted by the bank on the interest.
You are required to pass necessary journal entries in the year of redemption of debentures, including entries for interest on Debenture Redemption Investment. (Ignore the interest on Debentures)
