Advertisements
Advertisements
प्रश्न
On 1st April 2014, KK Ltd. invited applications for issuing 5,000 10% debentures of Rs 1,000 each at a discount of 6%. These debentures were repayable at the end of the 3rd year at a premium of 10%. Applications for 6,000 debentures were received and the debentures were allotted on pro-rata basis to all the applicants. Excess money received with applications was refunded.
The directors decided to transfer the minimum amount to Debenture Redemption Reserve on 31.3.2016. On 1.4.2016, the company invested the necessary amount in 9% bank fixed deposit as per the provisions of the Companies Act 2013. A tax was deducted at source by bank on interest @10% p.a.
Pass the necessary journal entries for issue and redemption of debentures. Ignore entries relating to writing off a loss on issue of debentures and interest paid on debentures.
Advertisements
उत्तर
| In the books of KK Ltd. Journal |
||||
| Date | Particulars | L.F |
Dr. Rs |
Cr. Rs |
|
2014 Apr 1
|
Bank A/c Dr. To Debenture Application & Allotment A/c (Being debenture application money received @ Rs 940 on 6,000 debentures) |
56,40,000
|
56,40,000
|
|
|
Apr 1
|
Debenture Application & Allotment A/c Dr. Loss on Issue of Debentures A/c (3,00,000 + 5,00,000) Dr To 10% Debenture A/c To Premium on Redemption of Debenture A/c To Bank A/c (1000*940) (Being debentures allotted at a discount of 6% to be redeemable at a 10% premium. Excess refunded.) |
56,40,000 8,00,000
|
50,00,000 5,00,000 9,40,000
|
|
|
2016 Mar 31 |
Balance in Statement of Profit & Loss A/c Dr To Debenture Redemption Reserve A/c (Being DRR created at 25%) |
12,50,000
|
12,50,000
|
|
|
Apr 1
|
Debenture Redemption Investment A/c Dr. To Bank A/c (Being DRI in 9% Fixed deposit @ 15% of Debenture Face Value) |
7,50,000
|
7,50,000
|
|
|
2017 Mar 31
|
10% Debenture A/c Dr. Premium on Redemption of Debentures A/c Dr. To Debentureholders A/c (Being debenture and premium repayment due) |
50,00,000 5,00,000
|
55,00,000
|
|
|
Mar 31
|
Bank A/c Dr. Income Tax Paid A/c Dr. To Debenture Redemption Investment A/c To Interest on Debenture Redemption Investment A/c (Being DRI matured and 9% Interest received thereon. Tax Deducted at source being 10% of the interest) |
8,10,750 6,750
|
7,50,000 67,500
|
|
| Mar 31 |
Debentureholders A/c Dr. To Bank A/c (Being amount paid to Debentureholders) |
55,00,000
|
55,00,000 | |
|
Mar 31
|
Debenture Redemption Reserve A/c Dr. To General Reserve A/c (Being DRR transferred to General Reserve) |
12,50,000
|
12,50,000
|
|
APPEARS IN
संबंधित प्रश्न
The debentures which are convertible into shares.
Give the meaning of Debenture?
Pass the necessary Journal entry when 10,000 debentures of Rs 100 each are issued as collateral security against a Bank loan of Rs 8,00,000
_______ is an acknowledgement of debt under common seal of a company.
Answer in a sentence only.
What is meant by debenture?
Answer in a sentence only.
What is meant by ‘Mortgaged Debenture’?
Answer in a sentence only.
What is meant by redemption of Debentures?
Answer in a sentence only.
What is meant by ‘Irredeemable Debentures?
Write one word/term/phrase which can substitute the following
The debentures where no charge is created on the assets of company.
Write one word/term/phrase which can substitute the following
The acknowledgment of debt under common seal of company.
Write one word/term/phrase which can substitute the following
The debentures of which payment is made on the expiry of specific period.
Write one word/term/phrase which can substitute the following
The debentures of which payment is made on the expiry of specific period.
Write one word/term/phrase which can substitute the following
The debentures which are not converted into shares.
Select most appropriate alternative from those given below ____________debentures which are recorded in register of company.
Select most appropriate alternative from those given below :
The debentures which are converted into shares is called____________.
Select most appropriate alternative from those given below :
The debenture holder is ___________ of the company.
State to whether the following statement is True/False.
The debenture holder is owner of the company.
State to whether the following statement is True/False.
The amount of irredeemable debentures is not paid in the life time of the company.
State to whether the following statement is True/False.
The debentures are known as creditors ship capital of the company.
State to whether the following statement is True/False.
The unregistered debentures are known as naked debentures.
State to whether the following statement is True/False.
Unsecured debentures are safer than secured debentures.
Give the word / term or phrase which can substitute the following statement.
The debentures which are converted into shares.
Answer the following question in one sentence.
What are ‘convertible debentures’?
Write Short Note on Secured Debentures
State any four disadvantages of debentures.
A Debenture issued by a company by creating a fixed or a floating charge on the company's assets is known as ______.
