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Pass Journal Entries in the Following Cases: - Accountancy

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प्रश्न

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%.

रोजकीर्द नोंद
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उत्तर

Journal

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

(a)

Bank A/c

Dr.

 

42,000

 

 

To 12% Debenture Application A/c

 

 

42,000

 

(Debenture application money received)

 

 

 

 

 

 

 

 

 

12% Debenture Application A/c

Dr.

 

42,000

 

 

To 12% Debentures A/c

 

 

40,000

 

To Securities Premium A/c

 

 

2,000

 

(Debenture application money transferred to 12% Debentures account and securities premium account)

 

 

 

Journal

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

(b)

Bank A/c

Dr.

 

36,000

 

 

To 12% Debenture Application A/c

 

 

36,000

 

(Debenture application money received)

 

 

 

 

 

 

 

 

 

12% Debenture Application A/c

Dr.

 

36,000

 

 

Discount on Issue of Debentures A/c

Dr.

 

4,000

 

 

To 12% Debentures A/c

 

 

40,000

 

(Debentures of Rs 40,000 issued at 10% discount)

 

 

 

Journal

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

(c)

Bank A/c

Dr.

 

40,000

 

 

To 12% Debenture Application A/c

 

 

40,000

 

(Debenture application money received)

 

 

 

 

 

 

 

 

 

12% Debenture Application A/c

Dr.

 

40,000

 

 

Loss on Issue of Debentures A/c

Dr.

 

4,000

 

 

To 12% Debentures A/c

 

 

40,000

 

To Premium on Redemption A/c

 

 

4,000

 

(Debentures of Rs 40,000 issued at par with the term repayable at 10% premium)

 

 

 

Journal

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

(d)

Bank A/c

Dr.

 

38,000

 

 

To 12% Debenture Application A/c

 

 

38,000

 

(Debenture application money received)

 

 

 

 

 

 

 

 

 

Debenture Application A/c

Dr.

 

38,000

 

 

Discount on Issue of Debenture A/c

Dr.

 

2,000

 

 

Loss on Issue of Debenture A/c

Dr.

 

2,000

 

 

To 12% Debentures A/c

 

 

40,000

 

To Premium on Redemption A/c

 

 

2,000

 

(Debentures of Rs 40,000 issued at 5% discount with the term repayable at 5% premium)

 

 

 

Journal

Date

Particulars

L.F.

Debit Amount

Rs

Credit Amount

Rs

(e)

Bank A/c

Dr.

 

44,000

 

 

To 12% Debenture Application A/c

 

 

44,000

 

(Debenture application money received)

 

 

 

 

 

 

 

 

 

12% Debenture Application A/c

Dr.

 

44,000

 

  Loss on Issue of Debentures A/c Dr.   4,000  

 

To 12% Debentures A/c

 

 

40,000

 

To Securities Premium A/c

 

 

4,000

    To Premium on Redemption A/c     4,000

 

(Debenture of Rs 40,000 issued at 10% premium with the term payable at 10% premium)

 

 

 

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पाठ 2: Issue of Debentures - Exercise [पृष्ठ ५५]

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टीएस ग्रेवाल Accountancy - Double Entry Book Keeping Volume 2 [English] Class 12
पाठ 2 Issue of Debentures
Exercise | Q 33 | पृष्ठ ५५

संबंधित प्रश्‍न

Long Answer Question

Describe the meaning of ‘Debenture Issued as Collateral Securities’. What accounting treatment is given to the issue of debentures in the books of accounts?


Narain Laxmi Ltd. invited applications for issuing 7,500; 12% Debentures of ₹ 100 each at a premium of ₹ 35 per debenture . The full amount was payable on application. Applications were received for 10,000 Debentures. Allotment was made to all the applications on pro rata.
Pass necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd.


Alka Ltd . issued 5,000, 10% Debentures of ​₹  1,000 each at a discount of 10% redeemable at a premium of 5% after 5 years . According to the terms of issue ​₹  500 was payable  on application and the balance amount on allotment of debentures. Record necessary entries regarding issue of 10% Debentures.


Green Ltd. purchased the assets of Strong Ltd. for ₹ 40,00,000 and took over liabilities of 7,00,000 at an agreed value of ₹ 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 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.


Pass necessary Journal entries for the issue of debentures in the following cases:

  1. ₹ 40,000; 12% Debentures of  ₹ 100 each issued at a premium of 5% redeemable at par.
  2. ₹ 70,000; 12% Debentures of  ₹ 100 each issued at a premium of 5% redeemable at ₹ 110.

Kitply Ltd.issued  ₹ 2,00,000, 10% Debentures  at a discount of 5% .The terms of issue provide the repayment at the end of 4 years . Kitply Ltd.has a balance of ₹ 5,00,000 in Securities Premium Reserve . The company decided to write off  discount on issue of debentures from Securities Premium Reserve in the first year.
Pass the journal entry.


Global Ltd. issued 10,000, 8% Debentures of  ₹ 100 each redeemable in four equal instalments by draw of lots from the end of 3 years at a premium of ₹ 9.
Pass the Journal entries for writing off the Loss on Issue of Debentures. Also prepare Loss on issue of Debentures Account.


Excess value of net assets over purchase consideration at the time of purchase of business is credited to ______.


When debentures are issued at a discount and are redeemable at a premium, which of the following accounts is debited at the time of issue?


The debentures are issued with a specified rate of interest, which is called the coupon rate are known as which types of debentures?


Loss on Issue of Debenture Account is shown:


Debenture premium cannot be used to ______.


Loss on issue of debentures is treated as ______.


Which of the following is not a characteristic of Bearer Debentures?


Maximum limit on premium on issue of debentures is ______.


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