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प्रश्न
Sarvottam Ltd. Decided to redeem its 1250, 12% Debentures of Rs 100 each. It purchased 850 Debentures from the open market at Rs 96 per Debenture. The remaining Debenture were redeemed out of profit. The company has already made a provision for Debenture Redemption Reserve in its books.
Pass necessary Journal entries in the books of the company for the above transaction.
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उत्तर
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Sarvottam Ltd. |
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Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
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|
(1) |
Own Debentures |
Dr. |
|
81,600 |
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To Bank A/c |
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81,600 |
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(850 own debentures purchased at Rs 96 each) |
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(2) |
12% Debentures A/c |
Dr. |
|
85,000 |
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To Own Debentures A/c |
|
|
|
81,600 |
|
|
To Profit on cancellation of own Debentures |
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3,400 |
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(850 own debenture cancelled) |
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(3) |
12% Debentures A/c |
Dr. |
|
40,000 |
|
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To Debentures holders |
|
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40,000 |
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(400 Debentures due for redemption) |
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(4) |
Debentures holder A/c |
Dr. |
|
4,00,000 |
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To Bank A/c |
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4,00,000 |
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(Payments of due for debenture paid to debenture holder) |
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(5) |
Profit on Cancellation of own Debenture A/c |
Dr. |
|
3,400 |
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To Capital Reserve A/c |
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3,400 |
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(Profit on cancellation of own debentures transferred to capital reserve) |
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APPEARS IN
संबंधित प्रश्न
On 1.4.2015, MKM Ltd. issued 12,000, 11% debentures of `100 each at a discount of 8%, redeemable at a premium of 10% after three years. The company closes its books on 31st March every year. Interest on 11% debentures is payable on 30th September and 31st March every year. The rate of tax deducted at source is 10%.
Pass necessary journal entries for the issue of 11% debentures and debenture interest for the year ended 31.3.2016.
'Ananya Ltd' had an authorized capital of Rs 10,00,00,000 divided into 10,00,000 equity shares of Rs 100 each. The company had already issued 2,00,000 shares. The dividend paid per share for the year ended 31.3.2007 was Rs 30. The management decided to export its products to African countries. To meet the requirements of additional funds, the finance manager put up the following three alternate proposals before the Board of Directors:
(1) Issue 47,500 equity shares at a premium of Rs 100 per share.
(2) Obtain a long-term loan from the bank which was available at 12% per annum.
(3) Issue 9% debentures at a discount of 5%.
After evaluating these alternatives the company decided to issue 1,00,000, 9% debentures on 1.4.2008. The face value of each debenture was Rs 100. These debentures were redeemable in four installments starting from the end of the third year, which was as follows:
| Year | Rs |
| III | 10,00,000 |
| IV | 20,00,000 |
| V | 30,00,000 |
| VI | 40,00,000 |
Prepare 9% debenture account from 1.4.2008 till all the debentures were redeemed.
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From the following Statement of Profit and Loss of Navratan Ltd. for the year ended 31st March, 2013, prepare a Comparative Statement of Profit and Loss:
| Particulars | Note No. | 2012 – 13 Rs |
2011 – 12 Rs |
| Revenue from operations | 8,05,000 | 6,14,000 | |
| Other Incomes | 43,000 | 51,000 | |
| Expenses | 5,59,000 | 4,88,000 |
Rate of income tax was 40%.
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Pass necessary Journal Entries in the books of the company for the above transactions.
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Pass necessary Journal entries for the following transaction in the books of Fortune Ltd:
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Answer in a sentence only.
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Write one word/term/phrase which can substitute the following
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Select most appropriate alternative from those given below :
The issue of debentures less than the face value is called ___________.
State to whether the following statement is True/False.
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State to whether the following statement is True/False.
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Pass necessary journal entries for the issue of debentures in the following cases :
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- Issued 90,000, 9% debentures of ₹100 each at par, redeemable at par after 4 years.
Pass necessary journal entries for the issue of debentures in the following cases:
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On 1st April 2022, Galaxy ltd. had a balance of ₹8,00,000 in Securities Premium account. During the year company issued 20,000 Equity shares of ₹10 each as bonus shares and used the balance amount to write off Loss on issue of Debenture on account of issue of 2,00,000, 9% Debentures of ₹100 each at a discount of 10% redeemable @ 5% Premium. The amount to be charged to Statement of P & L for the year for Loss on issue of Debentures would be:
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The following balances have been extracted from the books of Nirvana Ltd, as at 31st March, 2024:
| Particulars | (₹) | Particulars | (₹) |
| Security deposit for electricity for ten years | 30,000 | Uncalled amount on partly paid-up shares | 8,00,000 |
| Underwriting commission | 20,000 | 10% Debentures | 5,00,000 |
| General Reserve | 70,000 | Statement of P/L (Dr.) | 10,000 |
| Fixed Deposits | 2,00,000 | Calls-in arrears @ ₹ 1 per share | 40,000 |
| Premium on redemption of Debentures | 20,000 | Securities Premium | 2,00,000 |
| Equity Share Capital (1,00,000 shares of ₹ 10 each) |
10,00,000 |
You are required to show the above items in Notes to Accounts accompanying the Balance Sheet of Nirvana Ltd. prepared as per Schedule III of the Companies Act 2013 as at 31st March, 2024.
