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प्रश्न
On 1st April, 2012, Neptune Finance Company (a listed NBFC) issued 4,000, 9% Debentures of ₹ 100 each to be redeemed at a premium of 5% on 31st March, 2021.
You are required to pass necessary journal entries for the issue and redemption of debentures.
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उत्तर
| In the Books of Neptune Finance Company | ||||
| Journal Entries | ||||
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
| 2012 |
||||
| April 1 | Bank A/c ...Dr. | 4,00,000 | - | |
| To Debenture A/c | - | 4,00,000 | ||
| (Being application & allotment amount received) | ||||
| 2020 | ||||
| April 1 | Debenture Redemption Investment A/c ...Dr. | 60,000 | - | |
| To Bank A/c | - | 60,000 | ||
| (Being amount invested) | ||||
| 2021 | ||||
| March 31 | 9% Debentures A/c ...Dr. | 4,00,000 | - | |
| Premium on Redemption of Debentures A/c ...Dr. | 20,000 | - | ||
| To Debentureholders A/c | - | 4,20,000 | ||
| (Being amount due) | ||||
| March 31 | Debentureholders A/c ...Dr. | 4,20,000 | - | |
| To Bank A/c | - | 4,20,000 | ||
| (Being amount paid) | ||||
Working Notes:
- Premium on Redemption of Debentures = 5 % × ₹ 4,00,000 = ₹ 20,000
- Amount invested in Debenture Redemption Investment = 15% × ₹ 4,00,000 = ₹ 60,000
APPEARS IN
संबंधित प्रश्न
Joshi - Patil Ltd. issued 2,000, 10% debentures of Rs. 100 each, payable Rs. 20 on application and the balance on allotment. Company received applications for 2,500 debentures, out of which applications for 2,000 were alloted fully and remaining applications were rejected and the money refunded.
Journalise the above transactions, assuming that all the sums were received.
On 1st April, 2008 a company made an issue of Rs 2,00,000, 6% Debentures of Rs 100 each, repayable at a premium of 10%. The terms of issue provided for the redemption of 400 debentures every year starting from the end of 31-3-2010 either by purchase from the open market or by draw of lots at the company’s option.
On 31-3-2010, the company purchased for cancellation 300 debentures at 95% and 100 debentures at 90%.
Pass the necessary Journal entries for the issue and redemption of debentures assuming that the company had already created the
Debentures Redemption Reserve A/c by the require amount.
Answer in a sentence only.
What is meant by ‘Issue of debenture at discount and redeemable at premium’?
Answer in a sentence only.
What is meant by ‘Premium on Redemption of debentures?
State to whether the following statement is True/False.
Premium on issue of debentures is recorded on the asset side of balance sheet.
BGP Ltd. invited applications for issuing 15,000, 11% debentures of ₹ 100 each at a premium of ₹ 50 per debenture. The full amount was payable on application. Applications were received for 25,000 debentures. Applications for 5,000 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants on a pro-rata basis.
Pass the necessary journal entries for the above transactions in the books of BGP Ltd.
Suhas Ltd. issued 1,000, 7% Debentures of ₹ 100 each to be redeemed after three years at a premium of 5%. The face value of the debentures was payable as:
₹ 20 on Application
₹ 30 on Allotment (on 1st May, 2020)
₹ 30 on First call (on 1st October, 2020)
₹ 20 on Final call (on 1st January, 2021)
All the debentures were applied and allotted.
Ali, to whom 20 debentures were allotted, paid the allotment money and the two calls on 31st March, 2021. The Articles of Association of the company provided for interest on calls-in-arrear to be charged @ 10% per annum, which Ali paid on 31st March, 2021.
You are required to pass journal entries in the books of Suhas Ltd. to record:
- The adjustment and receipt of interest on calls in arrears
- The entry to close the interest on calls in arrears account
Savitri Ltd. issued 50,000, 8% Debentures of ₹ 100 each at a certain rate of premium to be redeemed at a 10% premium. At the time of writing off Loss on Issue of Debentures, Statement of Profit and Loss was debited with ₹ 2,00,000. At what rate of premium, these debentures were issued?
Health2Wealth Ltd. had share capital of ₹ 80,00,000 divided in shares of ₹ 100 each and 20,000, 8% Debentures of ₹ 100 each as part of capital employed. The company need additional funds of ₹ 55,00,000 for which they decided to issue debentures in such a way that they got required funds after issuing debentures of the same class as earlier, at 10% premium. These debentures were to be redeemed at 20% premium after 4 years. These debentures were issued on 01 October, 2021.
You are required to
- Pass entries for issue of Debentures.
- Prepare Loss on Issue of Debentures Account assuming there was existing balance of Securities Premium Account of ₹ 2,80,000.
- Pass entries for Interest on debentures on March 31, 2022 assuming interest is payable on 30 September and 31 March every year.
Pass necessary journal entries for the issue of debentures in the following cases:
- Issued 5,000, 9% debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 5% after 5 years.
- Issued 30,000, 12% debentures of ₹ 100 each at a premium of 5% and redeemable at par after 5 years.
- Issued 8,750, 12% debentures of ₹100 each at par, redeemable at par after 5 years.
