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Pass Necessary Journal Entries for the Issue of Debentures in the Following Cases: - Accountancy

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प्रश्न

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%.

रोजकीर्द नोंद
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उत्तर

(a)

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit Amount

Rs

 

Bank A/c

Dr.

 

36,000

 

 

  To Debenture Application A/c

 

 

 

36,000

 

(400 debentures issued at Rs 100 at discount of 10%)

 

 

 

 

 

 

 

 

 

 

 

Debenture Application A/c

Dr.

 

36,000

 

 

Discount on Issue of Debentures A/c

Dr.

 

4,000

 

 

  To 15% Debenture A/c

 

 

 

40,000

 

(400 debentures issued at discount and redeemable at a par )

 

 

 

 

(b) 

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit Amount

Rs

 

Bank A/c

Dr.

 

88,000

 

 

  To Debenture Application A/c

 

 

 

88,000

 

(800 debentures issued at Rs 100 at a premium of 10%)

 

 

 

 

 

 

 

 

 

 

 

Debenture Application A/c

Dr.

 

88,000

 

 

Loss on Issue of Debentures A/c

Dr.

 

8,000

 

 

  To 15% Debenture A/c

 

 

 

80,000

 

  To Premium on Redemption A/c

 

 

 

       8,000

 

  To Securities Premium A/c

 

 

 

8,000

 

(800 debentures issued at a premium of 10% and redeemable at a premium of 10%)

 

 

 

 

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पाठ 2: Issue of Debentures - Exercise [पृष्ठ ५६]

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टीएस ग्रेवाल Accountancy - Double Entry Book Keeping Volume 2 [English] Class 12
पाठ 2 Issue of Debentures
Exercise | Q 39 | पृष्ठ ५६

संबंधित प्रश्‍न

Short Answer Question

What is ‘Capital Reserve’?


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 .


Wye Ltd . purchased an established business for ​₹  2,00,000 payable as ​₹  65,000 by cheque and the balance by issuing 9% Debentures of ​₹  100 each at a discount of 10%.
Give journal entries  in the books of Wye Ltd.


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 discount of 10% as purchase consideration.
Record necessary journal entries in the books of Romi Ltd.


Grown Ltd. issued 500, 10% Debentures of ₹ 1,000 each credited as fully paid-up to the promoters for their services to incorporate the company. It also issued 100, 10% Debentures of ₹ 1,000 each credited as fully paid-up to the underwriters towards their commission. Pass the Journal entries.


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%.


Pass necessary Journal entries relating to the issue of  debentures for the following:
(a) Issued  ₹ 28,000; 10% Debentures of  ₹ 100 each at a premium of 15% redeemable at par.
(b) Issued  ₹ 30,000; 10% Debentures of  ₹ 100 each at a premium of 10% and redeemable at a premium of 15%.
(c) Issued  ₹ 80,000; 10% Debentures of  ₹ 100 each at par repayable at a premium of 10%.


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%.


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.


On 1st April, 2017, Solar Power Ltd. issued 10,000, 8% Debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 15% at the end of five years. All the debentures were subscribed and allotment was made. The company had balance in Securities Premium Reserve of ₹ 80,000.
Prepare the Balance Sheet (extract) as at 31st March, 2018.


Garvit Ltd. invited applications for issuing 3,000, 11% Debentures of ₹ 100 each at a discount of 6%. The full amount was payable on application. Applications were received for 3,600 debentures. Applications for 600 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants. Pass the necessary journal entries for the above transactions in the books of Garvit Ltd.


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 word 'debenture' has been derived from which Latin word (which means to borrow)?


Debenture interest is paid as ______.


Which of the following is true with regard to 10% Debentures issued at a discount of 20%?


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 ______.


MK Ltd. has outstanding Rs. 30,000 11% debentures of Rs. 100 each redeemable at 10% premium as follows:

March 31, 2018 - 10,000 debentures
March 31, 2019 - 12,000 debentures
March 31, 2020 - Remaining debentures

Pass necessary journal entries in the books of the company.


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