Advertisements
Advertisements
प्रश्न
MK Ltd. has outstanding Rs. 30,000 11% debentures of Rs. 100 each redeemable at 10% premium as follows:
| March 31, 2018 - | 10,000 debentures |
| March 31, 2019 - | 12,000 debentures |
| March 31, 2020 - | Remaining debentures |
Pass necessary journal entries in the books of the company.
Advertisements
उत्तर
| In the books of MK limited | ||||
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
| 2017 | ||||
| Apr. 30 | Debenture Redemption Investment A/c ...Dr. | 1,50,000 | ||
| To Bank A/c | 1,50,000 | |||
| (Being amount invested) | ||||
| 2018 | ||||
| Mar. 31 | 11% Debenture A/c ...Dr. | 10,00,000 | ||
| Premium on redemption A/c ...Dr. | 1,00,000 | |||
| To Debenture holder | 11,00,000 | |||
| (Being amount transferred to debenture holder) | ||||
| Mar. 31 | Debenture holder A/c ...Dr. | 11,00,000 | ||
| To Bank A/c | 11,00,000 | |||
| (Being amount paid to debenture holder) | ||||
| Apr. 30 | Debenture Redemption Investment A/c ...Dr. | 30,000 | ||
| To Bank A/c | 30,000 | |||
| (Being received amount invested) | ||||
| 2019 | ||||
| Mar. 31 | 11% Debenture A/c ...Dr. | 12,00,000 | ||
| Premium on redemption A/c ...Dr. | 1,20,000 | |||
| To Debenture holder A/c | 13,20,000 | |||
| (Being amount transfer to debenture holder) | ||||
| Mar. 31 | Debenture holder A/c ...Dr. | 13,20,000 | ||
| To Bank A/c | 13,20,000 | |||
| (Being amount paid to debenture holder) | ||||
| Apr. 30 | Bank A/c ...Dr. | 60,000 | ||
| To Debenture Redemption Investment | 60,000 | |||
| (Being investment sold) | ||||
| 2020 | ||||
| Mar. 31 | Bank A/c ...Dr. | 1,20,000 | ||
| To Debenture Redemption Investment | 1,20,000 | |||
| (Being investment sold) | ||||
| Mar. 31 | 11% Debenture A/c ...Dr. | 8,00,000 | ||
| Premium on redemption | 80,000 | |||
| To Debenture holder A/c | 8,80,000 | |||
| (Being amount transfer to debenture holder) | ||||
| Mar. 31 | Debenture holder A/c ...Dr. | 8,80,000 | ||
| To Bank A/c | 8,80,000 | |||
| (Being amount paid to debenture holder) | ||||
APPEARS IN
संबंधित प्रश्न
What is meant by ‘Issue of debenture at discount and redeemable at premium’?
What is the discount on the issue of debentures?
Vijay Laxmi Ltd. invited applications for 10,000; 12% Debentures of ₹ 100 each at a premium of ₹ 70 per debenture .The full amount was payable on application.
Applications were received for 13,500 debentures. Applications for 3,500 debentures were rejected and application money was refunded . Debentures were allotted to the remaining applications .
Iron Products Ltd. issued 5,000; 9% Debentures of ₹ 100 each at a premium of ₹ 40 payable as follows;
(i) ₹ 40 , including premium of ₹ 10 on applications;
(ii) ₹ 45, including premium of ₹ 15 on allotment ; and
(iii) Balance as first and final call.
The issue was subscribed and allotment made. Calls were made and due amount was received .
Pass Journal entries .
X Ltd . issued 12,000; 8% Debentures of ₹ 100 each at a discount of 5% payable as 25% on application;20% on allotment and balance after three months.
Pass Journal entries.
Bright Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of Star Ltd. for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 12% Debentures of ₹ 100 each. Give necessary Journal entries in the books of Bright Ltd., assuming that:
Case (a): The debentures are issued at par.
Case (b): The debentures are issued at 20% premium.
Case (c): The debentures are issued at 10% discount.
Journalise the following:
(a) A debenture issued at ₹95, repayable at ₹ 100.
(b) A debenture issued at ₹95, repayable at ₹ 105.
(c) A debenture issued at ₹95, repayable at ₹ 105.
The face value of debenture is ₹ 100 in each of the above cases.
Journalise the following transaction at the time of issue of 12% Debentures:
Nandan Ltd. issued ₹90,000, 12% Debentures of ₹ 100 each at a discount of 5% redeemable at 110%.
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 in the books of Garvit Ltd.
X Co. Ltd. purchased assets worth Rs.28,80,000. It issued debentures of Rs. 100 each at a discount of 4 per cent in full satisfaction of the purchase consideration. The number of debentures issued to vendor is ______.
When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to ______.
Premium on redemption is shown under which head until debentures are redeemed?
The debentures are issued with a specified rate of interest, which is called the coupon rate are known as which types of debentures?
Loss on Issue of Debenture Account is shown:
Rehana, Shakina and Jasmine are partners. They share When debentures are issued as collateral security, the final entry for recording the transaction in the books is ______.
Assertion (A): Issue of debenture does not result in dilution of interest of equity shareholders.
Reason (R): Debenture holders have voting rights.
Debenture premium cannot be used to ______.
Loss on issue of debentures is treated as ______.
Premium received on issue of debentures may be utilised for:
XYZ Ltd. Issued 6,000, 12% Debentures of ? 50 each on April 1, 2014. Interest on these debenture is payable annually 3151 March each year. The debentures are redeemable in four equal installments at end of third, fourth, fifth and sixth year. You are required to pan journal entries at the time of issue and redemption of debentures in the books of the company under following cases:
- Debentures are issued at par and redeemable at par.
- Debentures are issued at a premium of 10% and redeemable at par.
- Debentures are issued at a discount of 10% and redeemable at par.
- Debenture are issued at par but redeemable at a premium of 10%.
- Debentures are issued at a premium of 10% and redeemable at premium of 10%.
- Debenture are issued at a discount of 10% and redeemable at a premium of 10%.
