Advertisements
Advertisements
प्रश्न
On 1st April 2015, Mayfair Ltd. issued 4,000 9% debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 8%. The debentures were redeemable on 31st March 2019. The company created the necessary minimum amount of debenture redemption reserve and purchased the required amount of debenture redemption investments as per the provisions of Companies Act, 2013.
Pass the necessary journal entries for the redemption of debentures.
Advertisements
उत्तर
In the books of Mayfair Ltd.
Journal
| Date | Particulars | L.F. |
Debit Amount(₹) |
Credit Amount(₹) |
|
| 2018 |
|
|
|||
| March 31 | Surplus i.e. Balance as per Statement of Profit & Loss A/c | Dr. |
1,00,000 |
|
|
| To Debenture Redemption Reserve A/c |
|
1,00,000 |
|||
| Being 25% of 4,000 debentures transferred to DRR) |
|
|
|||
|
|
|
||||
| 2018 April 30 |
Debenture Reserve Investment A/c | Dr. |
60,000 |
|
|
| To Bank A/c |
|
60,000 |
|||
| (Being Debenture Redemption Investment made at 15% for 4,000 debentures ) |
|
|
|||
|
|
|
||||
| 2019 March 31 |
Bank A/c | Dr. |
60,000 |
|
|
| To Debenture Reserve Investment A/c |
|
60,000 |
|||
| (Being debenture reserve securities matured) |
|
|
|||
|
|
|
||||
| 2019 March 31 |
9% Debenture A/c | Dr. |
4,00,000 |
|
|
| Premium on Redemption A/c | Dr. |
32,000 |
|
||
| To Debenture holder’s A/c |
|
4,32,000 |
|||
| (For amount due on debenture holders) |
|
|
|||
|
|
|
||||
| 2019 March 31 |
Debenture holders A/c | Dr. |
4,32,000 |
|
|
| To Bank A/c |
|
4,32,000 |
|||
|
|
(For debentures paid) |
|
|
||
|
|
|
|
|||
|
2019 March 31 |
Debenture Redemption Reserve A/c | Dr. |
1,00,000 |
|
|
| To General Reserve A/c |
|
1,00,000 |
|||
|
|
(For DRR transferred to General reserve) |
|
|
संबंधित प्रश्न
Short Answer Question
How would you deal with ‘Premium on Redemption of Debentures’?
Long Answer Question
Differentiate between redemption of debentures out of capital and out of profits.
Long Answer Question
Describe the steps for creating Sinking Fund for redemption of debentures.
Long Answer Question
Can a company purchase its own debentures in the open market? Explain
Own debentures are those debentures of the company which ______.
Which of the following column indicated in the statement given below is to be debited?
"Purchase of own debentures by the company for cancellation" ·
Consider the following statements.
Statement 1 - "No DRR is required for debentures issued by All India Financial Institutions, regulated by RBI and Banking Companies for both public as well as privately placed debentures".
Statement 2 - DRR is required for debentures issued by All India Financial Institutions, regulated by RBI and Banking Companies for both public as well as privately placed debentures"
Give the necessary journal entries at time of redemption of debentures
"X Ltd. issued 500, 9% debentures of Rs.100 each at par and redeemable at par at the end of 5 years out of capital."
According to SEBI guidelines, what percentage of the amount of debentures must be transferred to Debenture Redemption Reserve, before the commencement of redemption of debentures, in the case of convertible debentures?
If debentures purchased in the open market are not immediately cancelled, they are treated as:
Debentures can be redeemed out of:
Which of the following is not true about Debenture Redemption Reserve (DRR)?
Sources of finance for the redemption of debentures are ______.
What is the nature of Premium on Redemption of Debenture Account?
