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M.Ltd. took over assets of Rs 9,00,00,000 and liabilities of Rs 70,00,000 of S.Ltd. and issued 8%Debenture of Rs 100 each. Record necessary entries in the books of M. Ltd.
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X.Ltd. issued 15,000, 10% debentures of Rs 100 each. Give journal entries and the Balance Sheet in each of the following cases:
(i) The debentures are issued at a premium of 10%;
(ii) The debentures are issued at a discount of 5%;
(iii) The debentures are issued as a collateral security to bank against a loan of Rs 12,00,000; and
(iv) The debentures are issued to a supplier of machinery costing Rs 13,50,000.
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Which of the following statements is incorrect about debentures?
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On 1-4-2013 NK Ltd. had 15,000, 9% Debentures of Rs.100 each outstanding.
(i) On 1-4-2014 the company purchased from the open market 5,000 of its own debentures for Rs.102 each and cancelled the same immediately.
(ii) On 1-4-2015 company redeemed at par debentures of Rs.3, 00,000 by draw of lot.
(iii) On 17-2-2016 the remaining debentures were purchased for immediate cancellation for Rs.5, 99,500.
Ignoring debenture redemption reserve and interest on debentures pass necessary journal entries for the above transactions in the books of the company.
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On 1-4-2013 JN Ltd had 10,000, 9% Debentures of 100 each outstanding.
(i) On 1-4-2014 the company purchased in the open market 2000 of its own debentures for 101 each and cancelled the same immediately.
(ii) On 1-4-2015 the company redeemed at par debentures of 4, 00,000 by draw of a lot.
(iii) On 28-2-2016 the remaining debentures were purchased for immediate cancellation for 3, 97,000.
Pass necessary journal entries for the above transactions in the books of the company ignoring debentures redemption reserve and interest on debentures
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On 1.4.2013 JJJ Ltd had Rs.1,00,00,000, 10% Debentures of Rs.100 each outstanding.
(i) On 1.4.2014 the company purchased in the open market 30,000 of its own debentures for Rs.99 each and cancelled the same immediately.
(ii) On 28.2.2015 the company redeemed at par debentures of Rs.50, 00,000 by draw of a lot.
(iii) On 31.1.2016 the remaining debentures were purchased for immediate cancellation for Rs.19,99,000.
Ignoring interest on debentures and debenture redemption reserve, pass necessary journal entries for the above transactions in the books of the company.
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On 1.4.2013 JMR Ltd. had 20,000, 9% debentures of Rs 100 each outstanding
(i) On 1.4.2014 the company purchased in the open market 6,000 of its own debentures for Rs 98 each and cancelled the same immediately.
(ii) On 28.2.2015 the company redeemed at par debentures of Rs 10, 00,000 by draw of a lot.
(iii) On 1.3.2016 the remaining debentures were purchased for immediate cancellation for Rs 3, 99,000.
Ignoring interest on debentures and debenture redemption reserve, pass necessary journal entries for the above transactions in the books of JMR Ltd.
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On 1.4.2013 Roshni Ltd. had Rs 50,00,000, 9% debentures of Rs 100 each outstanding.
(i) On 1.4.2014 the company purchased in the open market 20,000 of its own debentures at Rs 98.50 each and cancelled the same immediately.
(ii) On 1.10.2014 the company redeemed at par debentures of Rs 16,00,000 by draw of a lot.
(iii) On 31.3.2015 the remaining debentures were purchased for immediate cancellation for Rs 9,98,000. Ignoring interest on debentures and debenture redemption reserve.
Pass necessary journal entries for the above transactions in the books of Roshni Ltd.
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On 1-4-2013 JN Ltd had 5,000, 10% Debentures of 100 each outstanding.
(i) On 1-4-2014 the company purchased in the open market 2000 of its own debentures for 105 each and cancelled the same immediately.
(ii) On 1-4-2015 the company redeemed at par debentures of 1,00,000 by draw of a lot.
(iii) On 28-2-2016 the remaining debentures were purchased for immediate cancellation for 1,97,000
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On 1-4-2013 NK Ltd. had 20,000, 11% Debentures of Rs 100 each outstanding.
(i) On 1-4-2014 the company purchased in the open market 4,000 of its own debentures at Rs 102 each and cancelled the same immediately.
(ii) On 1-4.2015 the company redeemed at par debentures of Rs 8, 00,000 by draw of a lot.
(iii) On 28-2-2016 the remaining debentures were purchased for immediate cancellation for Rs 7, 89,900.
Pass necessary journal entries for the above transactions in the books of the company ignoring debenture redemption reserve and interest on debentures.
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On 1.4.2013 Kaka Ltd. had Rs 50,00,000, 9% debentures of Rs 100 each outstanding.
(i) On 1-4-2014 the company purchased in the open market 25,000 of its own debentures of Rs 99 each and cancelled the same immediately.
(ii) On 1-4-2015 the company redeemed at par debentures of Rs 10,00,000 by draw of lot.
(iii) On 1-1-2016 the remaining debentures were purchased for Rs 14,99,000 and were cancelled immediately.
Ignoring debenture redemption reserve and interest on debentures pass necessary journal entries for the above transactions in the books of the company.
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The debentures which are payable on the expiry of a specified period either in lump-sum or in installments during the life time of the company are known as ______.
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State the provisions of the Companies Act, 2013 for the creation of 'Debenture Redemption Reserve'.
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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.
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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.
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Star Ltd. is a manufacturer of chemical fertilisers. Its annual turnover is ₹ 50 crores. The company had issued 5,000, 12% Debentures of ₹ 500 each at par. Calculate the amount of Debentures Redemption Reserve which needs to be created to meet the requirements of law.
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Dow Ltd. issued ₹ 2,00,000; 8% Debentures of ₹ 10 each at a premium of 8% on 30th June, 2016 redeemable on 31st March, 2018. How much amount should be transferred to Debentures Redemption Reserve before redemption of debentures?
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Nirbhai Chemicals Ltd. issued ₹ 10,00,000; 6% Debentures of ₹ 50 each at a premium of 8% on 30th June, 2018 redeemable on 30th June, 2019. The issue was fully subscribed. Pass Journal entries for issue and redemption of debentures. How much amount should be transferred to Debentures Redemption Reserve before redemption of debentures? Also, state how much amount should be invested in specified securities?
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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.
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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.
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