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प्रश्न
On 1st April, 2025, V.V.L. Ltd. issued 1,000, 9% Debentures of ₹ 100 each at a discount of 6%, redeemable at a premium of 10% after three years. Pass necessary Journal entries for the issue of debentures and debenture interest for the year ended 31st March, 2026, if interest is payable on 30th September and 31st March. The company closes its books on 31st March every year.
[Hint: Amount received as Debentures Application and Allotment A/c = 1,000 × ₹ 94 = ₹ 94,000. Interest on 1,000 Debentures of ₹ 100 each for 6 months = ₹ 1,00,000 × 9/100 x 6/12 = ₹ 4,500.]
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उत्तर
| Journal Entries | ||||
|---|---|---|---|---|
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
| 1 April 2025 | Bank A/c ...Dr. | 94,000 | ||
| To Debentures Application and Allotment A/c | 94,000 | |||
| (Being application and allotment money received) | ||||
| 1 April 2025 | Debentures Application and Allotment A/c ...Dr. | 94,000 | ||
| Loss on Issue of Debentures A/c ...Dr. | 16,000 | |||
| To 9% Debentures A/c | 1,00,000 | |||
| To Premium on Redemption of Debentures A/c | 10,000 | |||
| (Being 1,000, 9% Debentures of ₹ 100 each issued at 6% discount and redeemable at 10% premium) | ||||
| 30 Sept. 2025 | Debenture Interest A/c ...Dr. | 4,500 | ||
| To Bank A/c | 4,500 | |||
| (Being half-yearly interest on debentures paid) | ||||
| 31 March 2026 | Debenture Interest A/c ...Dr. | 4,500 | ||
| To Bank A/c | 4,500 | |||
| (Being half-yearly interest on debentures paid) | ||||
| 31 March 2026 | Statement of Profit and Loss A/c ...Dr. | 9,000 | ||
| To Debenture Interest A/c | 9,000 | |||
| (Being debenture interest for the year transferred to Statement of Profit and Loss) | ||||
Working Note:
Face Value of Debentures:
1,000 × ₹ 100 = ₹ 1,00,000
Discount on Issue:
₹ 1,00,000 × 6% = ₹ 6,000
Premium on Redemption:
₹ 1,00,000 × 10% = ₹ 10,000
Loss on Issue of Debentures:
₹ 6,000 + ₹ 10,000 = ₹ 16,000
Amount Received:
₹ 1,00,000 − ₹ 6,000 = ₹ 94,000
Half-Yearly Interest:
₹ 1,00,000 × 9% × `6/12` = ₹ 4,500
Total Interest for the Year:
₹ 4,500 × 2 = ₹ 9,000
संबंधित प्रश्न
What is meant by ‘Issue of debentures for Consideration other than Cash’?
What is meant by an ‘Irredeemable Debenture’?
What accounting treatment is given to the issue of debentures in the books of accounts?
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?
Journalise the following:
(i) A debenture issued at Rs. 95, repayable at Rs. 100;
(ii) A debenture issued at Rs. 95, repayable at Rs. 105; and
(iii) A debenture issued at Rs. 100, repayable at Rs. 105;
The face value of the debenture in each of the above cases is Rs. 100.
A. Ltd. issued 50,00,000, 8% Debentures of Rs 100 at a discount of 6% on April 01, 2009, redeemable at a premium of 4% by draw of lots as under:
20,00,000 Debentures on March, 2011
10,00,000 Debentures on March 2013
20,00,000 Debentures on March 2014
Compute the amount of discount to be written off in each year till debentures are paid. Also prepare the discount/loss on the issue of the debenture account.
B. Ltd. issued 1,000, 12% debentures of Rs 100 each on April 01, 2014, at a discount of 5% redeemable at a premium of 10%.
Give journal entries relating to the issue of debentures and debenture interest for the period ending March 31, 2015, assuming that interest is paid half-yearly on September 30 and March 31, and tax deducted at source is 10%.
ABC Ltd. issued 40,000; 10% Debentures of ₹ 100 each at par for cash payable in full along with the application. Applications were received for 60,000 debentures . Debentures were allotted and excess application money was refunded. Pass Journal entries in the books of the company.
Raj Ltd . issued 5,000; 8% Debentures of ₹ 100 each at a premium of 5% payable as follows:
₹ 10 on application ; ₹ 20 along with premium on allotment and balance on first and final call.
Pass necessary Journal entries.
Romi Ltd. acquired assets of ₹ 20 lakhs and took over creditors of ₹ 2 lakhs from Kapil Enterprises.
Romi Ltd. issued 8% Debentures of ₹ 100 each at a premium of 25% as purchase consideration.
Record necessary journal entries in the books of Romi Ltd.
Footfall Ltd. issues 10,000 Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 5% after the expiry of three years.
Pass Journal entries for the issue of these debentures.
Pass necessary Journal entries relating to the issue of debentures for the following:
(a) Issued ₹ 4,00,000; 9% Debentures of ₹ 100 each at a premium of 8% redeemable at 10% premium.
(b) Issued ₹ 6,00,000; 9% Debentures of ₹ 100 each at par, repayable at a premium of 10%.
(c) Issued ₹ 10,00,000; 9% Debentures of ₹ 100 each at a premium of 5%, redeemable at par.
Journalise the following transaction at the time of issue of 12% Debentures:
Nandan Ltd. issued ₹90,000, 12% Debentures of ₹ 100 each at a discount of 5% 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 .
On 1st January, 2017, Raha Ltd. issued 6,000, 8% Debentures of nominal (face) value of ₹ 100 each redeemable at 5% premium in equal proportions at the end of 5, 10 and 15 years. It has a balance of ₹ 10,000 in Securities Premium Reserve.
Pass Journal entries. Also give Journal entries for writing off Loss on Issue of Debentures.
Debentures which are transferable by mere delivery are ______.
When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to ______.
Pick the odd one out:
Debenture holders are the ______.
X Ltd. purchased assets of ₹ 18,00,000 and took over liabilities of ₹ 6,00,000 of Y Ltd. for a purchase consideration of ₹ 10,00,000. The payment to Y Ltd. was made by issue of 9% debentures of ₹ 100 each at ₹ 125. Calculate the number of 9% debentures issued in favour of Y Ltd. and pass the necessary journal entries for the above transactions in the books of X Ltd.
