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प्रश्न
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.
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उत्तर
In the books of Raha Ltd.
Journal
|
Date |
Particulars |
|
L.F. |
Debit |
Credit |
|
2017 |
|
|
|
||
|
January 01 |
Bank A/c (6,000 × 100) |
Dr. |
6,00,000 |
|
|
|
|
To Debentures Application & Allotment A/c (6,000 × 100) |
|
|
6,00,000 |
|
|
|
(Being application money received on 8% Debentures issued) |
|
|
|
|
|
|
|
|
|
||
|
January 01 |
Debentures Application & Allotment A/c |
Dr. |
6,00,000 |
|
|
|
|
Loss on Issue of Debentures A/c |
Dr. |
30,000 |
|
|
|
|
To 8% Debentures A/c |
|
|
6,00,000 |
|
|
|
To Premium on Redemption of Debentures A/c |
|
|
30,000 |
|
|
|
(Being application & allotment money adjusted along with 5% |
|
|
|
|
|
|
premium payable on redemption) |
|
|
|
|
|
2017 |
|
|
|
||
| December 31 | Securities Premium Reserve A/c |
Dr. |
10,000 |
|
|
| Statement of Profit & Loss A/c |
Dr. |
20,000 |
|
||
|
|
To Loss on Issue of Debentures A/c |
|
|
30,000 |
|
|
|
(Being loss on issue of debentures written off) |
|
|
|
संबंधित प्रश्न
What is ‘Capital Reserve’?
What is the discount on the issue of debentures?
Long Answer Question
Explain the different terms for the issue of debentures with reference to their redemption.
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 debentures at 94% for Rs 4,00,000 on April 01, 2011 repayable by five equal drawings of Rs 80,000 each. The company prepares its final accounts on March 31 every year.
Indicate the amount of discount to be written-off every accounting year assuming that the company decides to write-off the debentures discount during the life of debentures. (Amount to be written-off: 2012 Rs 8,000; 2013 Rs 6,400; 2014 Rs 4,800; 2015 Rs 2,000; 2016 Rs 1,600).
Vishwas Ltd. issued 2,000; 9% Debentures of ₹ 100 each payable as follows:
₹ 25 on application; ₹ 25 on allotment and ₹ 50 on first and final call.
Applications were received for all the debentures along with the application money did allotment was made . Call money was also received on the due date.
Pass necessary Journal entries in the books of the company.
Bright Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of Star Ltd. for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 12% Debentures of ₹ 100 each. Give necessary Journal entries in the books of Bright Ltd., assuming that:
Case (a): The debentures are issued at par.
Case (b): The debentures are issued at 20% premium.
Case (c): The debentures are issued at 10% discount.
Wellbeing Ltd. took over assets of ₹ 9,80,000 and liabilities of ₹ 40,000 of HDR Ltd. at an agreed value of ₹ 9,00,000. Wellbeing Ltd. paid to HDR Ltd. by issue of 9% Debentures of ₹ 100 each at a premium of 20%. Pass necessary Journal entries to record the above transactions in the books of Wellbeing 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 for the issue of Debentures in the following cases:
(a) ₹ 40,000; 15% Debentures of ₹ 100 each issued at a discount of 10% redeemable at par.
(b) ₹ 80,000; 15% Debentures of ₹ 100 each issued at a premium of 10% redeemable at a premium of 10%.
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?
When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to ______.
Which of the following situations are commonly found in practice during the issue and redemption of debentures?
Which of the following. column indicated in·the statement given below is to be credited?
"Writing off the loss on issue of debentures"
A debenture is a ______.
Rehana, Shakina and Jasmine are partners. They share When debentures are issued as collateral security, the final entry for recording the transaction in the books is ______.
Debentures are considered as ______ equity.
Pick the odd one out.
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.
