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A.Ltd. Issued 50,00,000, 8% Debenture of Rs 100 at a Discount of 6% on April 01, 2009 Redeemable at Premium of 4% by Draw of Lots as Under: - Accountancy

Numerical

A.Ltd. issued 50,00,000, 8% Debenture of Rs 100 at a discount of 6% on April 01, 2009 redeemable at 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 discount/loss on issue of debenture account.

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Solution

Loss on issue of debenture = 6% (discount on issue) + 4% (premium on redemption) = 10%

`50,00,000 xx 100 xx 10/100 = 5,00,00,000`

At the end of

Debenture Outstanding

Ratio

Loss to be written off every year

March 2010

50,00,00,000

5

`5,00,00,000 xx 5/18`

=

1,38,88,889

March 2011

50,00,00,000

5

`5,00,00,000 xx 5/18`

=

1,38,88,889

March 2012

30,00,00,000

3

`5,00,00,000 xx 3/18`

=

83,33,333

March 2013

30,00,00,000

3

`5,00,00,000 xx 3/18`

=

83,33,333

March 2014

20,00,00,000

2

`5,00,00,000 xx 2/18`

=

55,55,556

 

 

18

 

 

Rs 5,00,00,000

Loss on Issue of Debenture Account

Dr.

 

 

 

 

 

 

Cr.

 

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2009

April 01

Debenture

 

5,00,00,000

2010

March 31

Profit and Loss

 

1,38,88,889

 

 

 

 

 

Balance c/d

 

3,61,11,111

 

 

 

5,00,00,000

 

 

 

5,00,00,000

2010

April 01

Balance b/d

 

3,61,11,111

2011

March 31

Profit and Loss

 

1,38,88,889

 

 

 

 

 

Balance c/d

 

2,22,22,222

 

 

 

3,61,11,111

 

 

 

3,61,11,111

2011

April 01

Balance b/d

 

2,22,22,222

2012

March 31

Profit and Loss

 

83,33,333

 

 

 

 

 

Balance c/d

 

1,38,88,889

 

 

 

2,22,22,222

 

 

 

2,22,22,222

2012

April 01

Balance b/d

 

1,38,88,889

2013

March 31

Profit and Loss

 

83,33,333

 

 

 

 

 

Balance c/d

 

55,55,556

 

 

 

1,38,88,889

 

 

 

1,38,88,889

2013

April 01

Balance b/d

 

55,55,556

2014

March 31

Profit and Loss

 

55,55,556

 

 

 

55,55,556

 

 

 

55,55,556

  Is there an error in this question or solution?
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APPEARS IN

NCERT Class 12 Accountancy - Company Accounts and Analysis of Financial Statements
Chapter 2 Issue and Redemption of Debentures
Numerical Questions | Q 14 | Page 137
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