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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
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संबंधित प्रश्न
What is meant by ‘Issue of debentures for Consideration other than Cash’?
What accounting treatment is given to the issue of debentures in the books of accounts?
A company issues the following debentures:
- 10,000 12% debentures of Rs. 100 each at par but redeemable at a premium of 5% after 5 years;
- 10,000 12% debentures of Rs. 100 each at a discount of 10% but redeemable at par after 5 years;
- 5,000 12% debentures of Rs. 1,000 each at a premium of 5% but redeemable at par after 5 years;
- 1,000 12% debentures of Rs. 100 each issued to a supplier of machinery costing Rs. 95,000. The debentures are repayable after 5 years and
- 300 12% debentures of Rs. 100 each as collateral security to a bank that has advanced a loan of Rs. 25,000 to the company for a period of 5 years.
Pass the journal entries to record the: (a) issue of debentures, and (b) repayment of debentures after the given period.
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.
Vijay Laxmi Ltd. invited applications for 10,000; 12% Debentures of ₹ 100 each at a premium of ₹ 70 per debenture .The full amount was payable on application.
Applications were received for 13,500 debentures. Applications for 3,500 debentures were rejected and application money was refunded . Debentures were allotted to the remaining applications .
Deepak Ltd purchased furniture of ₹ 2,20,000 from M/s. Furniture Mart. 50% of the amount was paid to M/s. Furniture Mart by accepting a bill of exchange and for the balance, the company issued 9% debentures of ₹ 100 each at a premium of 10% in favor of M/s. Furniture Mart.
Pass Journal entries in the books of Deepak Ltd.
Green Ltd. purchased the assets of Strong Ltd. for ₹ 40,00,000 and took over liabilities of ₹ 7,00,000 for ₹ 32,40,000. Payment was made by issuing 10% Debentures of ₹ 100 each at a discount of 10%. Pass the necessary Journal entries in the books of Green Ltd.
Exe Ltd. purchased the assets of the book value ₹4,00,000 and took over the liabilities of ₹ 50,000 from Mohan Bros.It was agreed that the purchase consideration ,settled at ₹3,80,000 be paid by issuing debentures of ₹ 100 each.
Pass journal entries if debenture are issued:
(a) at par
(b) at a discount of 10% and
(c) at a premium of 10%.
It was agreed that any fraction of debentures be paid in cash.
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 necessary Journal entries for the issue of debentures in the following cases:
- ₹ 40,000; 12% Debentures of ₹ 100 each issued at a premium of 5% redeemable at par.
- ₹ 70,000; 12% Debentures of ₹ 100 each issued at a premium of 5% redeemable at ₹ 110.
A limited company issued ₹ 1,00,000, 9% Debentures at a discount of 6% on 1st April, 2017. These debentures are to be redeemed equally, spread over 5 annual instalments.
Pass the Journal entries for issue of debentures and writing off the discount.
X Co. Ltd. purchased assets worth Rs.28,80,000. It issued debentures of Rs. 100 each at a discount of 4 per cent in full satisfaction of the purchase consideration. The number of debentures issued to vendor is ______.
Discount on issue of debentures is shown under the following head in the Balance Sheet?
Debenture interest is paid as ______.
Interest on Debentures is a charge against ______.
Pick the odd one out.
Premium received on issue of debentures may be utilised for:
