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प्रश्न
Krishna Ltd. had outstanding 20,000, 9% debentures of ₹ 100 each on 1st April 2014. These debentures were redeemable at a premium of 10% in two equal installments starting from 31st March 2018. The company had a balance of ₹ 4,00,000 in Debenture Redemption Reserve on 31st March 2017. Pass necessary journal entries for the redemption of debentures in the books of Krishna Ltd. for the year ended 31st March 2018.
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उत्तर
Books of Krishna Ltd.
Journal
| Date | Particulars | L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
|
| 2017 | |||||
| April 01 | Debenture Redemption Investment A/c (15% of ₹ 10,00,000) | Dr. | 1,50,000 | ||
| To Bank A/c | 1,50,000 | ||||
| (Being investment made to the extent of minimum 15% of the redeemable value of debentures) | |||||
| 2018 | |||||
| March 31 | Bank A/c | Dr. | 1,50,000 | ||
| To Debenture Redemption Investment A/c | 1,50,000 | ||||
| (Being investment in securities realised) | |||||
| March 31 | Statement of Profit & Loss A/c | Dr. |
1,00,000 |
||
| To Debenture Redemption Reserve A/c |
1,00,000 |
||||
| (Being shortage in DRR to the extent of 25% of the nominal value of debentures transferred to DRR) | |||||
| March 31 | 9% Debenture A/c | Dr. |
10,00,000 |
||
| Premium on Redemption of Debentures A/c | Dr. | 1,00,000 | |||
| To Debenture holder’s A/c | 11,00,000 | ||||
| (Being redemption of 10,000 debentures due in the first installment ) | |||||
| March 31 | Debenture holders A/c | Dr. | 11,00,000 | ||
| To Bank A/c | 11,00,000 | ||||
| (Being payment made to debenture holders) | |||||
| March 31 | Debenture Redemption Reserve A/c | Dr. | 2,50,000 | ||
| To General Reserve A/c | 2,50,000 | ||||
| (Being proportionate amount of DRR transferred to General reserve) |
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संबंधित प्रश्न
Short Answer Question
What is meant by redemption of debentures by ‘Purchase in the Open Market’?
Long Answer Question
Can a company purchase its own debentures in the open market? Explain
Long Answer Question
What is meant by conversion of debentures? Describe the method of such a conversion.
X.Ltd. purchased a Machinery from Y for an agreed purchase consideration of Rs 4,40,000 to be satisfied by the issue of 12% debentures of Rs 100 each at a premium of Rs 10 per debenture. Journalise the transactions.
A company issued debentures of the face value of Rs 5,00,000 at a discount of 6% on April 01, 2012. These debentures are redeemable by annual drawings of Rs,1,00,000 made on March 31 each year. The directors decided to write off discount based on the debentures outstanding each year.
Calculate the amount of discount to be written-off each year. Give journal entries also.
What journal entries will be made in the following cases when company redeems debentures at the expiry of period by serving the notice: (a) when debentures were issued at par with a condition to redeem them at premium; (b) when debentures were issued at premium with a condition to redeem that at par; and (c) when debentures were issued at discount with a condition to redeem them at premium?
On 1st April 2015, Mayfair Ltd. issued 4,000 9% debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 8%. The debentures were redeemable on 31st March 2019. The company created the necessary minimum amount of debenture redemption reserve and purchased the required amount of debenture redemption investments as per the provisions of Companies Act, 2013.
Pass the necessary journal entries for the redemption of debentures.
Which of the following given statement is correct.
Statement 1 - "Bond and debentures are same in terms of contents and texture."
Statement 2 - "Bond and debentures are not same in terms of contents and texture."
If debentures purchased in the open market are not immediately cancelled, they are treated as:
Sources of finance for the redemption of debentures are ______.
