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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 |
संबंधित प्रश्न
State the provisions of the Companies Act, 2013 for the creation of 'Debenture Redemption Reserve'.
Pass the necessary journal entries for the issue and redemption of Debentures in the following cases:
(i) 15,000, 9% Debentures of Rs 250 each issued at 5% premium, repayable at 15% premium.
(ii) 2,00,000, 12% Debentures of Rs 10 each issued at 8% premium, repayable at par.
IFCI Ltd.(An All India Financial Institution) issued 10,00,000; 9% Debentures of ₹ 50 each on 1st April, 2011 redeemable on 1st April, 2019. How much amount of Debentures Redemption Reserve is required before the redemption of debentures? Also, pass Journal entries for issue and redemption of debentures.
On 31st March, 2003, G Ltd. had ₹ 8,00,000;9% Debentures due for redemption. The company had a balance of ₹ 1,40,000 in its Debentures Redemption Reserve . Pass necessary journal entries for redemption of debentures.
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.
Manish Ltd. issued ₹ 40,00,000; 8% Debentures of ₹ 100 each on 1st April, 2017. The terms of issue stated that the debentures are to be redeemed at a premium of 5% on 30th June, 2019. The company decided to transfer ₹ 10,00,000 out of profits to Debentures Redemption Reserve on 31st March, 2018 and ₹ 10,00,000 on 31st March, 2019.
Pass Journal entries regarding the issue and redemption of debentures, DRR and Investment without providing for the interest or loss on issue of debentures.
Apollo Ltd.issued 21,000; 8% Debentures of ₹ 100 each on 1st April, 2013 redeemable at a premium of 8% on 30th June, 2019. The company decided to transfer the required amount to Debentures Redemption Reserve in three equal annual instalments starting with 31st March, 2017. Required investment was made in Government Securities on 30th April, 2019. Ignore interest on debentures and also investment.
Pass necessary Journal entries regarding issue, transfer to DRR, investment, and redemption of debentures.
On 1st April, 2016, following were the balances of Blue Bird Ltd.:
| 10% Debentures (redeemable on 30th September, 2017) | ₹ 15,00,000 |
| Debentures Redemption Reserve | ₹ 2,00,000 |
The company met the requirements of the Companies Act, 2013 regarding Debentures Redemption Reserve and Investment and redeemed the debentures.
Pass necessary Journal entries for the above transactions in the books of the company.
Rich sugar Ltd. issued ₹ 20 Lakh,8% Debentures divided into debentures of ₹ 100 each on 1st April, 2013, redeemable in four equal annual installments starting from 31st March,2016. The company decided to transfer to Debentures Redemption Reserve ₹ 2,50,000 each year on 31st March,2014 and 2015.
The company invested ₹ 3,00,000 in Government securities as required by the Companies Act, 2013.
Pass necessary journal entries for the above transactions.
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.
Venus Ltd. had 9,000, 9% Debentures of ₹ 100 each due for redemption . These debentures are to be redeemed in 3 equal installments (starting from 31st March,2015) at a premium of 10%. The company had a balance of ₹ 25,000 in the Debentures Redemption Reserve .
Pass necessary entries for redemption of debentures assuming that company transfer the balance of DRR to General Reserve after redeeming all the debentures.
'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.
No debenture redemption reserve is required for debentures issued by ______.
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)
Ronny Ltd. (an unlisted construction company) redeems its 7,000, 10% Debentures of ₹100 each at a premium of 5% in instalments, as follows:
| Date of Redemption | Debentures to be redeemed |
| 31st March, 2022 | 2,000 |
| 31st March, 2023 | 3,000 |
| 31st March, 2024 | 2,000 |
You are required to prepare for the year 2023-24:
- General Reserve Account.
- Debenture holders’ Account. (Ignore interest on Debentures).
