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प्रश्न
Alka Ltd. issued 5,000, 10% Debentures of ₹ 1,000 each at a discount of 10% redeemable after 5 years. According to the terms of issue, ₹ 500 (after discount of ₹ 50) was payable on application and the balance amount on allotment of debentures. Record necessary entries regarding issue of 10% Debentures.
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उत्तर
| Journal Entries In the Books of Alka Ltd. |
||||
|---|---|---|---|---|
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
| 1. | Bank A/c ...Dr. | 25,00,000 | ||
| To Debentures Application A/c | 25,00,000 | |||
| (Application money received @ ₹ 500 per debenture) | ||||
| 2. | Debentures Application A/c ...Dr. | 25,00,000 | ||
| Discount on Issue of Debentures A/c ...Dr. | 2,50,000 | |||
| To 10% Debentures A/c | 27,50,000 | |||
| (Application money transferred and discount of ₹ 50 per debenture recorded) | ||||
| 3. | Debentures Allotment A/c ...Dr. | 20,00,000 | ||
| Discount on Issue of Debentures A/c ...Dr. | 2,50,000 | |||
| To 10% Debentures A/c | 22,50,000 | |||
| (Allotment money due after adjustment of discount of ₹ 50 per debenture) | ||||
| 4. | Bank A/c ...Dr. | 20,00,000 | ||
| To Debentures Allotment A/c | 20,00,000 | |||
| (Allotment money received @ ₹ 400 per debenture) | ||||
Working note:
Face value of debentures:
5,000 × ₹ 1,000 = ₹ 50,00,000
Total discount @ 10%:
₹ 50,00,000 × 10% = ₹ 5,00,000
On application, ₹ 500 is payable after discount of ₹ 50. Therefore, nominal amount due on application:
₹ 500 + ₹ 50 = ₹ 550
Balance nominal amount due on allotment:
₹ 1,000 − ₹ 550 = ₹ 450
Remaining discount on allotment:
₹ 100 − ₹ 50 = ₹ 50
Hence, cash payable on allotment:
₹ 450 − ₹ 50 = ₹ 400
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संबंधित प्रश्न
What is meant by ‘Issue of debenture at discount and redeemable at premium’?
What is meant by an ‘Irredeemable Debenture’?
B. Ltd. purchased assets of the book value of Rs. 4,00,000 and took over the liability of Rs. 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at Rs. 3,80,000, be paid by issuing debentures of Rs 100 each.
What Journal entries will be made in the following three cases, if debentures are issued: (a) at par; (b) at discount; (c) at a premium of 10%? It was agreed that any fraction of debentures be paid in cash.
(Note: Goodwill Rs. 30,000)
Narain Laxmi Ltd. invited applications for issuing 7,500; 12% Debentures of ₹ 100 each at a premium of ₹ 35 per debenture. The issue price was payable on application. Issue was subscribed and allotment was made.
Pass necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd.
Alok Ltd. issued 7,000, 10% Debentures of ₹ 500 each at a premium of ₹ 50 per debenture redeemable at a premium of 10% after 5 years. According to the terms of issue, ₹ 200 was payable on application and balance on allotment.
Record necessary Journal entries at the time of issue of 10% Debentures.
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.
Green Ltd. purchased the assets of Strong Ltd. for ₹ 40,00,000 and took over liabilities of ₹ 7,00,000 for ₹ 32,40,000. Payment was made by issuing 10% Debentures of ₹ 100 each at a discount of 10%. Pass the necessary Journal entries in the books of Green Ltd.
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.
Global Ltd. issued 10,000, 8% Debentures of ₹ 100 each redeemable in four equal instalments by draw of lots from the end of 3 years at a premium of ₹ 9.
Pass the Journal entries for writing off the Loss on Issue of Debentures. Also prepare Loss on issue of Debentures Account.
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, including writing off the Discount on Issue of Debentures, in the books of Garvit Ltd.
Which of the following. column indicated in·the statement given below is to be credited?
"Writing off the loss on issue of debentures"
A debenture is a ______.
Which of the following is true with regard to 10% Debentures issued at a discount of 20%?
Debenture holders are ______.
Debenture premium cannot be used to ______.
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:
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?
