मराठी

Pass Necessary Journal Entries Relating to the Issue of Debentures for the Following:

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प्रश्न

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.

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उत्तर

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit 

Amount

Rs

(a)

Bank A/c

Dr.

 

4,32,000

 

 

To Debenture Application and Allotment A/c

 

 

 

4,32,000

 

(Application money received on 4,000 9%  Debentures)

 

 

 

 

 

 

 

 

 

Debenture Application and Allotment A/c

Dr.

 

4,32,000

 

 

Loss on Issue of Debenture A/c

Dr.

 

40,000

 

 

To 9% Debentures A/c

 

 

 

4,00,000

 

To Securities Premium Reserve A/c

 

 

 

32,000

 

To Premium on Redemption of debentures A/c

 

 

 

40,000

 

(4,000; 9% Debentures issued at a premium of Rs 8 and redeemable at premium of 10%)

 

 

 

 

 

 

 

 

(b)

Bank A/c

Dr.

 

6,00,000

 

 

To Debenture Application and Allotment A/c

 

 

 

6,00,000

 

(Application money received on 6,000 9% Debentures)

 

 

 

 

 

 

 

 

 

Debenture Application and Allotment A/c

Dr.

 

6,00,000

 

 

Loss on Issue of Debenture A/c

Dr.

 

60,000

 

 

To 9% Debentures A/c

 

 

 

6,00,000

 

To Premium on Redemption of Debentures A/c

 

 

 

60,000

 

(6,000; 9% Debentures issued at par and redeemable at premium of 10%)

 

 

 

 

 

 

 

 

(c)

Bank A/c

Dr.

 

10,50,000

 

 

To Debenture Application and Allotment A/c

 

 

 

10,50,000

 

(Application money received on 10,000 9%Debentures)

 

 

 

 

 

 

 

 

 

Debenture Application and Allotment A/c

Dr.

 

10,50,000

 

 

To 9% Debentures A/c

 

 

 

10,00,000

 

To Securities Premium Reserve A/c

 

 

 

50,000

 

(1,000; 9% Debentures issued at a premium of Rs 5)

 

 

 

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पाठ 9: Issue of Debentures - Exercise [पृष्ठ ५५]

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टीएस ग्रेवाल Accountancy Double Entry Book Keeping Volume 1 and 2 [English] Class 12
पाठ 9 Issue of Debentures
Exercise | Q 35 | पृष्ठ ५५

संबंधित प्रश्‍न

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?


B. Ltd. purchased assets of the book value of Rs. 4,00,000 and took over the liability of Rs. 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at Rs. 3,80,000, be paid by issuing debentures of Rs 100 each.

What Journal entries will be made in the following three cases, if debentures are issued: (a) at par; (b) at discount; (c) at a premium of 10%? It was agreed that any fraction of debentures be paid in cash.

(Note: Goodwill Rs. 30,000)


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.


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.


Nipa Limited issued 10,000 Debentures of ₹ 100 each at a premium of 10%, payable 30% of nominal (facе) value on application (including premium) and the balance on allotment. The debentures were applied for and the amount was duly received.

You are required to give Journal entries and prepare Cash Book.


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 .


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.


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.


On 1st June, 2017, R Energy Ltd. issued 10,000, 7% Debentures of  ₹ 100 each at a discount of 10% redeemable at a premium of 10% at the end of five years. All the debentures were subscribed and allotment was made.

Prepare the Balance Sheet (extract) as at 31st March, 2018. 


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.


Premium on redemption is shown under which head until debentures are redeemed?


Which of the following given statement is correct.

Statement 1 - "Debenture is written instrument acknowledging a debt under the common seal of the company"

Statement 2 - Debenture is oral instrument acknowledging a debt under the common seal of the company"


Which of the following statement is true?


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


Maximum limit on premium on issue of debentures is ______.


Debenture is ______.


A company can issue debentures:


Premium received on issue of debentures may be utilised for:


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