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प्रश्न
XYZ Ltd. Issued 6,000, 12% Debentures of ? 50 each on April 1, 2014. Interest on these debenture is payable annually 3151 March each year. The debentures are redeemable in four equal installments at end of third, fourth, fifth and sixth year. You are required to pan journal entries at the time of issue and redemption of debentures in the books of the company under following cases:
- Debentures are issued at par and redeemable at par.
- Debentures are issued at a premium of 10% and redeemable at par.
- Debentures are issued at a discount of 10% and redeemable at par.
- Debenture are issued at par but redeemable at a premium of 10%.
- Debentures are issued at a premium of 10% and redeemable at premium of 10%.
- Debenture are issued at a discount of 10% and redeemable at a premium of 10%.
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उत्तर
(i) Debentures are issued at par and redeemable at par.
| In the books of XYZ Ltd. Journal Entries |
||||
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
| 1. | Bank A/c ...Dr. | 3,00,000 | ||
| To Debenture application and allotment A/c | 3,00,000 | |||
| (Being debenture amount received) | ||||
| 2. | Debenture application and allotment A/c ...Dr. | 3,00,000 | ||
| To 12% Debenture A/c | 3,00,000 | |||
| (Being amount transfer to debenture) | ||||
| 3. | 12% Debenture A/c ...Dr. | 75,000 | ||
| To Debenture holder A/c | 75,000 | |||
| (Being amount transfer to debenture holder) | ||||
| 4. | Debenture holder A/c ...Dr. | 75,000 | ||
| To Bank A/c | 75,000 | |||
| (Being amount paid to debenture holder) | ||||
(ii) Debentures are issued at a premium of 10% and redeemable at par.
| In the books of XYZ Ltd. Journal Entries |
||||
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
| 1. | Bank A/c ...Dr. | 3,30,000 | ||
| To Debenture application and allotment A/c | 3,30,000 | |||
| (Being debenture amount received) | ||||
| 2. | Debenture application and allotment A/c ...Dr. | 3,30,000 | ||
| To 12% Debenture A/c | 3,00,000 | |||
| To Securities Premium A/c | 30,000 | |||
| (Being amount transfer to debenture) | ||||
| 3. | 12% Debenture A/c ...Dr. | 75,000 | ||
| To Debenture holder A/c | 75,000 | |||
| (Being amount transfer to debenture holder) | ||||
| 4. | Debenture holder A/c ...Dr. | 75,000 | ||
| To Bank A/c | 75,000 | |||
| (Being amount paid to debenture holder) | ||||
(iii) Debentures are issued at a discount of 10% and redeemable at par.
| In the books of XYZ Ltd. Journal Entries |
||||
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
| 1. | Bank A/c ...Dr. | 2,70,000 | ||
| To Debenture application and allotment A/c | 2,70,000 | |||
| (Being debenture amount received) | ||||
| 2. | Debenture application and allotment A/c ...Dr. | 2,70,000 | ||
| Loss on issue of Debenture A/c ...Dr. | 60,000 | |||
| To 12% Debenture A/c | 3,00,000 | |||
| To Premium on Redemption A/c | 30,000 | |||
| (Being amount transfer to debenture) | ||||
| 3. | 12% Debenture A/c ...Dr. | 75,000 | ||
| Premium on Redemption A/c ...Dr. | 7,500 | |||
| To Debenture holder A/c | 82,500 | |||
| (Being amount transfer to debenture holder) | ||||
| 4. | Debenture holder A/c ...Dr. | 82,500 | ||
| To Bank A/c | 82,500 | |||
| (Being amount paid to debenture holder) | ||||
(iv) Debenture are issued at par but redeemable at a premium of 10%.
| In the books of XYZ Ltd. Journal Entries |
||||
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
| 1. | Bank A/c ...Dr. | 3,00,000 | ||
| To Debenture application and allotment A/c | 3,00,000 | |||
| (Being debenture amount received) | ||||
| 2. | Debenture application and allotment A/c ...Dr. | 3,00,000 | ||
| Loss on issue of Debenture A/c ...Dr. | 30,000 | |||
| To 12% Debenture A/c | 3,00,000 | |||
| To Premium on Redemption A/c | 30,000 | |||
| (Being amount transfer to debenture) | ||||
| 3. | 12% Debenture A/c ...Dr. | 75,000 | ||
| Premium on Redemption A/c ...Dr. | 7,500 | |||
| To Debenture holder A/c | 82,500 | |||
| (Being amount transfer to debenture holder) | ||||
| 4. | Debenture holder A/c ...Dr. | 82,500 | ||
| To Bank A/c | 82,500 | |||
| (Being amount paid to debenture holder) | ||||
(v) Debentures are issued at a premium of 10% and redeemable at premium of 10%.
| In the books of XYZ Ltd. Journal Entries |
||||
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
| 1. | Bank A/c ...Dr. | 3,30,000 | ||
| To Debenture application and allotment A/c | 3,30,000 | |||
| (Being debenture amount received) | ||||
| 2. | Debenture application and allotment A/c ...Dr. | 3,30,000 | ||
| Loss on issue of Debenture A/c ...Dr. | 30,000 | |||
| To 12% Debenture A/c | 3,00,000 | |||
| To Securities Premium A/c | 30,000 | |||
| To Premium on Redemption A/c | 30,000 | |||
| (Being amount transfer to debenture) | ||||
| 3. | 12% Debenture A/c ...Dr. | 75,000 | ||
| Premium on Redemption A/c ...Dr. | 7,500 | |||
| To Debenture holder A/c | 82,500 | |||
| (Being amount transfer to debenture holder) | ||||
| 4. | Debenture holder A/c ...Dr. | 82,500 | ||
| To Bank A/c | 82,500 | |||
| (Being amount paid to debenture holder) | ||||
(vi) Debenture are issued at a discount of 10% and redeemable at a premium of 10%.
| In the books of XYZ Ltd. Journal Entries |
||||
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
| 1. | Bank A/c ...Dr. | 2,70,000 | ||
| To Debenture application and allotment A/c | 2,70,000 | |||
| (Being debenture amount received) | ||||
| 2. | Debenture application and allotment A/c ...Dr. | 2,70,000 | ||
| Discount on issue of Debenture A/c ...Dr. | 30,000 | |||
| To 12% Debenture A/c | 3,00,000 | |||
| (Being amount transfer to debenture) | ||||
| 3. | 12% Debenture A/c ...Dr. | 75,000 | ||
| To Debenture holder A/c | 75,000 | |||
| (Being amount transfer to debenture holder) | ||||
| 4. | Debenture holder A/c ...Dr. | 75,000 | ||
| To Bank A/c | 75,000 | |||
| (Being amount paid to debenture holder) | ||||
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संबंधित प्रश्न
Long Answer Question
Explain the different terms for the issue of debentures with reference to their redemption.
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What Journal entries will be made in the following three cases, if debentures are issued: (a) at par; (b) at discount; (c) at premium of 10%? It was agreed that any fraction of debentures be paid in cash.
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20,00,000 Debentures on March, 2011
10,00,000 Debentures on March, 2013
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Compute the amount of discount to be written-off in each year till debentures are paid. Also prepare discount/loss on issue of debenture account.
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On 1st January, 2017, Raha Ltd. issued 6,000, 8% Debentures of nominal (face) value of ₹ 100 each redeemable at 5% premium in equal proportions at the end of 5, 10 and 15 years. It has a balance of ₹ 10,000 in Securities Premium Reserve.
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Office Products Ltd, issued on 1st April, 2018, 20,000, 9% Debentures of ₹ 100 each at a premium of 10% redeemable at a premium of 5% after 5 years. Issue price was payable along with application. Pass the necessary Journal entries.
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 word 'debenture' has been derived from which Latin word (which means to borrow)?
The debentures are issued with a specified rate of interest, which is called the coupon rate are known as which types of debentures?
The loss on issue of Debentures is written-off from ______.
Pick the odd one out:
Debentures are considered as ______ equity.
Interest on Debentures is a charge against ______.
Maximum limit on premium on issue of debentures is ______.
Which of the following is not a source of cash?
