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प्रश्न
Nipa Limited issued 10,000 Debentures of ₹ 100 each at a premium of 10%, payable 30% of nominal (facе) value on application (including premium) and the balance on allotment. The debentures were applied for and the amount was duly received.
You are required to give Journal entries and prepare Cash Book.
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उत्तर
| Journal Entries In the Books of Nipa Limited |
||||
|---|---|---|---|---|
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
| 1. | Bank A/c ...Dr. | 3,00,000 | ||
| To Debentures Application A/c | 3,00,000 | |||
| (Application money received on 10,000 debentures) | ||||
| 2. | Debentures Application A/c ...Dr. | 3,00,000 | ||
| To Debentures A/c | 2,00,000 | |||
| To Securities Premium A/c | 1,00,000 | |||
| (Application money transferred, including premium of ₹ 10 per debenture) | ||||
| 3. | Debentures Allotment A/c ...Dr. | 8,00,000 | ||
| To Debentures A/c | 8,00,000 | |||
| (Allotment money due @ ₹ 80 per debenture) | ||||
| 4. | Bank A/c ...Dr. | 8,00,000 | ||
| To Debentures Allotment A/c | 8,00,000 | |||
| (Allotment money received) | ||||
Working note:
Face value of debentures:
10,000 × ₹ 100 = ₹ 10,00,000
Premium @ 10%:
10,000 × ₹ 10 = ₹ 1,00,000
Application money: 30% of face value, including premium
10,000 × ₹ 30 = ₹ 3,00,000
Out of ₹ 30 application money:
Premium = ₹ 10, Capital = ₹ 20
Therefore, capital received on application:
10,000 × ₹ 20 = ₹ 2,00,000
Balance payable on allotment:
₹ 110 − ₹ 30 = ₹ 80 per debenture
10,000 × ₹ 80 = ₹ 8,00,000
संबंधित प्रश्न
What is meant by ‘Issue of debenture at discount and redeemable at premium’?
What is ‘Capital Reserve’?
A Ltd . issued 2,000; 9% Debentures of ₹ 100 each on the following terms:
₹20 on applications ;₹ 20 on allotment ; ₹ 30 on first call ; ₹ 30 on final call.
The public applied for 2,400 debentures. Applications for 1,800 debentures were accepted in full. Applications for 400 debentures were allotted 200 debentures and applications for 200 debentures were rejected . Pass necessary Journal entries .
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.
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.
Deepak Ltd purchased furniture of ₹ 2,20,000 from M/s. Furniture Mart. 50% of the amount was paid to M/s. Furniture Mart by accepting a bill of exchange and for the balance, the company issued 9% debentures of ₹ 100 each at a premium of 10% in favor of M/s. Furniture Mart.
Pass Journal entries in the books of Deepak Ltd.
Pass necessary Journal entries relating to the issue of debentures for the following:
(a) Issued ₹ 28,000; 10% Debentures of ₹ 100 each at a premium of 15% redeemable at par.
(b) Issued ₹ 30,000; 10% Debentures of ₹ 100 each at a premium of 10% and redeemable at a premium of 15%.
(c) Issued ₹ 80,000; 10% Debentures of ₹ 100 each at par repayable at a premium of 10%.
XYZ Ltd.issued 5,000 , 10% Debentures of ₹ 100 each on 1st April, 2015 at a discount of 10% redeemable at a premium of 10% after 4 years. Give journal entries for the year ended 31st March, 2016, assuming that the interest was payable half-yearly on 30th September and 31st March. Tax is to be deducted @ 10%.
On 1st April, 2015. Mathew Ltd. issued 10,000, 9% Debentures of ₹ 100 each at a discount of 5%, redeemable at a premium of 5%. These debentures were redeemable as follows:
| On 31st March, 2016 | 2,000 Debentures; |
| On 31st March, 2017 | 5,000 Debentures; |
| On 31st March, 2018 | 3,000 Debentures. |
Prepare the Loss on Issue of Debentures Account, Debentures Account and Premium on Redemption of Debentures Account for three years.
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 ______.
Discount on issue of debentures is shown under the following head in the Balance Sheet?
Which of the following situations are commonly found in practice during the issue and redemption of debentures?
Which of the following given statement is correct.
Statement 1 - "Shares cannot be converted into debentures whereas debentures can be converted into shares"
Statement 2 - "Shares can be converted into debentures whereas debentures cannot be converted into shares"
Debenture holders are ______.
Interest on Debentures is a charge against ______.
Which of the following statement is true?
Which of the following is false with respect to debentures ?
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.
A company can issue debentures:
