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Xylo Ltd. issued 9,000, 7% Debentures of ₹ 100 each at a certain rate of discount. - Accounts

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प्रश्न

Xylo Ltd. issued 9,000, 7% Debentures of ₹ 100 each at a certain rate of discount. After writing off the discount on the issue of debentures, the company was left with a balance of ₹ 35,000 in its Securities Premium out of the original amount of ₹ 71,000.

At what rate of discount did the company issue these Debentures?

संख्यात्मक
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उत्तर

Original amount in securities premium 71,000
Less: Balance left 35,000
Discount written off from securities premium 36,000

Number of debentures issues = 9,000

Discount per share = `("36,000")/("9,000")` = ₹ 4

Rate of discount = `("Discount")/("Face Value")xx100`

= `4/100xx100`

= 4%

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संबंधित प्रश्‍न

Joshi - Patil Ltd. issued 2,000, 10% debentures of Rs. 100 each, payable Rs. 20 on application and the balance on allotment. Company received applications for 2,500 debentures, out of which applications for 2,000 were alloted fully and remaining applications were rejected and the money refunded.

Journalise the above transactions, assuming that all the sums were received.


Pass necessary journal entries in the given cases :

Britannia Ltd. redeemed 3,000, 12% debentures of  Rs 100 each which were issued at a discount of  Rs 10 per debenture by converting them into equity shares of  Rs 100 each Rs 90 paid up.


Joy Ltd. invited applications for issuing 20,000 equity shares of Rs 10 each at par. The amount was payable as follows:

On Application − Rs 3 per share

On Allotment − Rs 4 per share

On First and find call − Balance amount

The issue was oversubscribed by three times. Applications for 20% shares were rejected and the money was refunded. Allotment was made to the remaining applicants as follows: 

Category No. of Shares Applied No. of Shares Allotted
I 30,000 15,000
II 18,000 5,000

Excess money received with applications was adjusted towards sums due on allotment. Money in excess to sums due on allotment was adjusted towards sums due on first and final call and any money in excess to sums due on first and final call was refunded. Kavi, a shareholder who had applied for 600 shares, failed to pay the remaining allotment money and his shares were immediately forfeited. Kavi belonged to Category I.

Afterwards the first and final call was made. Gupta, who had applied for 400 shares, failed to pay the first and final call. Gupta also belonged to Category I.

Shares of Gupta were also forfeited after the first and final call. The forfeited shares were reissued at Rs 12 per share fully paid up.

Pass necessary journal entries for the above transactions in the books of Joy Ltd.


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: 

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Nav Lakshmi Ltd. Invited application for issuing 3,000, 12% Debentures of Rs 100 each at a premium of Rs 50 per Debentures. The full amount was payable on application.

Applications were received for 4,000 debentures. Application for 1,000 debentures were rejected and application money was refunded. Debentures were allotted to the remaining applicants.

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Pass necessary Journal entries for the following transaction in the books of Fortune Ltd:

 

(i) Redeemed Rs 96,000, 12% Debenture by conversion into Equity Shares of Rs 100 each. The

Equity Shares were issued at a discount 4%.

 

(ii) Converted 4,800, 12% Debentures of Rs 100 each into New 13% Debentures of Rs 100 each.

The new Debentures were issued at a premium 25%.


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Answer in a sentence only.
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Suhas Ltd. issued 1,000, 7% Debentures of ₹ 100 each to be redeemed after three years at a premium of 5%. The face value of the debentures was payable as:

₹ 20 on Application

₹ 30 on Allotment (on 1st May, 2020)

₹ 30 on First call (on 1st October, 2020)

₹ 20 on Final call (on 1st January, 2021)

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Ali, to whom 20 debentures were allotted, paid the allotment money and the two calls on 31st March, 2021. The Articles of Association of the company provided for interest on calls-in-arrear to be charged @ 10% per annum, which Ali paid on 31st March, 2021.

You are required to pass journal entries in the books of Suhas Ltd. to record:

  • The adjustment and receipt of interest on calls in arrears
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