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प्रश्न
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.
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उत्तर
In the books of Mathew Ltd.
Loss on Issue of Debentures A/c
Dr. Cr.
|
Date |
Particulars |
Amount (₹) |
Date |
Particulars |
Amount (₹) |
||
| 2015 |
|
2016 |
|
||||
| April 01 | To 9% Debentures A/c |
1,00,000 |
March 31 | By Statement of Profit & Loss A/c |
1,00,000 |
||
|
1,00,000 |
1,00,000 |
||||||
9% Debentures A/c
Dr. Cr.
|
Date |
Particulars |
Amount (₹) |
Date |
Particulars |
Amount (₹) |
||
| 2016 |
|
2015 |
|
||||
| March 31 | To Debentureholders A/c |
2,00,000 |
April 01 | By Debenture Application & Allotment A/c |
9,50,000 |
||
| March 31 | To balance c/d |
8,00,000 |
April 01 | By Loss on Issue of Debentures A/c |
50,000 |
||
|
10,00,000 |
10,00,000 |
||||||
| 2017 |
|
2016 |
|
||||
| March 31 | To Debentureholders A/c |
5,00,000 |
April 01 | By balance b/d |
8,00,000 |
||
| March 31 | To balance c/d |
3,00,000 |
|
||||
|
8,00,000 |
8,00,000 |
||||||
| 2018 |
|
2017 |
|
||||
| March 31 | To Debentureholders A/c |
3,00,000 |
April 01 | By balance b/d |
3,00,000 |
||
|
3,00,000 |
3,00,000 |
||||||
Premium on Redemption of Debentures A/c
Dr. Cr.
|
Date |
Particulars |
Amount (₹) |
Date |
Particulars |
Amount (₹) |
||
| 2016 |
|
2015 |
|
||||
| March 31 | To Debentureholders A/c |
10,000 |
April 01 | By Loss on Issue of Debentures A/c |
50,000 |
||
| March 31 | To balance c/d |
40,000 |
|
||||
|
50,000 |
50,000 |
||||||
| 2017 |
|
2016 |
|
||||
| March 31 | To Debentureholders A/c |
25,000 |
April 01 | By balance b/d |
40,000 |
||
| March 31 | To balance c/d |
15,000 |
|
||||
|
40,000 |
40,000 |
||||||
| 2018 |
|
2017 |
|
||||
| March 31 | To Debentureholders A/c |
15,000 |
April 01 | By balance b/d |
15,000 |
||
|
15,000 |
15,000 |
||||||
संबंधित प्रश्न
State the meaning of ‘Debentures issued as Collateral Security’.
What is the discount on the issue of debentures?
Long Answer Question
How is ‘Discount on Issue of Debentures’ treated in the books of accounts? How will you deal with the ‘discount in issue of debentures’ when the debentures are to be redeemed in instalments?
Alok Ltd. issued 7,000, 10% Debentures of ₹ 500 each at a premium of ₹ 50 per debenture redeemable at a premium of 10% after 5 years. According to the terms of issue, ₹ 200 was payable on application and balance on allotment.
Record necessary Journal entries at the time of issue of 10% Debentures.
'Sangam Woollens Ltd.', Ludhiana, are the manufacturers and exporters of woollen garments. The company decided to distribute free of cost woollen garments to 10 villages of Lahaul and Spiti District of Himachal Pradesh. The company also decided to employ 50 young persons from these villages in its newly established factory. The company issued 40,000 Equity Shares of ₹ 10 each and 1,000, 9% Debentures of ₹ 100 each to the vendor for the purchase of machinery of ₹ 5,00,000. Pass necessary Journal entries.
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.
Pass journal entries in the following cases:
(a) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 5% redeemable at par.
(b) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 10% redeemable at par.
(c) A Co.Ltd. issued ₹40,000; 12% Debentures at par redeemable at 10% premium.
(d) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 5% and redeemable at 5% premium.
(e) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 10% redeemable at 110%.
Bright Ltd. issued 5,000; 10% Debentures of ₹ 100 each on 1st April, 2015 . The issue was fully subscribed . According to the terms of issue, interest on the debentures is payable half-yearly on 30th September and 31st March and the tax deducted at source is 10%.
Pass necessary journal entries related to the debenture interest for the year ending 31st March , 2016 and transfer of interest on debentures of the year to the Statement of Profit and Loss .
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, including writing off the Discount on Issue of Debentures, in the books of Garvit Ltd.
When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to ______.
The word 'debenture' has been derived from which Latin word (which means to borrow)?
Which of the following given statement is correct.
Statement 1 - "Debenture is written instrument acknowledging a debt under the common seal of the company"
Statement 2 - Debenture is oral instrument acknowledging a debt under the common seal of the company"
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"
Loss on Issue of Debenture Account is shown:
Interest on Debentures is a charge against ______.
Assertion (A): Issue of debenture does not result in dilution of interest of equity shareholders.
Reason (R): Debenture holders have voting rights.
Pick the odd one out.
Loss on issue of debentures is treated as ______.
A Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of B Ltd. for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 15% debentures of ₹ 100 each at 10% discount. The number of debentures to be issued is:
