English

Fill in the Blank. the Portion of Uncalled Capital to Be Called Only in the Event of Winding up of the Company is Called ____________.

Advertisements
Advertisements

Question

Fill in the blank.
The portion of uncalled capital to be called only in the event of winding up of the company is called ____________.

Fill in the Blanks
Advertisements

Solution

The portion of uncalled capital to be called only in the event of winding up of the company is called Reserve Capital.

shaalaa.com
Creation of Debenture Redemption Reserve
  Is there an error in this question or solution?
2019-2020 (March) Delhi Set 1

RELATED QUESTIONS

Pass the necessary journal entries for the issue and redemption of Debentures in the following cases:

(i) 15,000, 9% Debentures of Rs 250 each issued at 5% premium, repayable at 15% premium.

(ii) 2,00,000, 12% Debentures of Rs 10 each issued at 8% premium, repayable at par.


X Ltd. had Rs 10,00,00 9% debentures due to be redeemed out of profits on 1st October 2009 at a premium of 5%. The company had a

Debentures Redemption Reserve of Rs 4,14,000. Pass necessary journal entries at the time of redemption.

 


On 31st March, 2003, G Ltd. had ₹ 8,00,000;9% Debentures due for redemption. The company had a balance of ₹ 1,40,000 in its Debentures Redemption Reserve . Pass necessary journal entries for redemption of debentures. 


On 31st March, 2018, W Ltd. had the following balances in its books:
9% Debentures 6,00,000
Debentures Redemption Reserve    50,000
Surplus,i.e., Balance in Statement of Profit and Loss 3,00,000

On that date, the company decided to transfer ₹ 1,00,000 to Debentures Redemption Reserve. It also decided to redeem  debentures of ₹ 3,00,000 on 30th June, 2018.

Pass necessary Journal entries in the books of the company. 


India Textiles Corporation Ltd. has outstanding ₹ 50,00,000; 9% Debentures of ₹ 100 each due for redemption on 31st July, 2019. Pass Journal entries for redemption assuming that there is a balance of ₹ 3,00,000 in Debentures Redemption Reserve  on the date of redemption.


Manish  Ltd. issued ₹ 40,00,000; 8% Debentures of ₹ 100 each on 1st April, 2017. The terms of issue stated that the debentures are to be redeemed at a premium of 5% on 30th June, 2019. The company decided to transfer ₹ 10,00,000 out of profits to Debentures Redemption Reserve on 31st March, 2018 and ₹ 10,00,000 on 31st March, 2019.
Pass Journal entries regarding the issue and redemption of debentures, DRR and Investment without providing for the interest or loss on issue of debentures.


Godrej Ltd. has 20,000; 7% Debentures of ₹ 100 each due for redemption on 31st August, 2018. There is a balance of ₹ 3,50,000 in Debentures Redemption Reserve Account as on 31st March, 2016. Investment, as required by the Companies Act, 2013 is made on 1st April, 2017 in fixed deposit bearing interest @ 6% p.a. Bank deducted TDS @ 10% on its maturity which is 31st March, 2018.
Pass Journal entries for redemption of debentures.


Apollo Ltd.issued 21,000; 8% Debentures of ₹ 100 each on 1st April, 2013 redeemable at a premium of 8% on 30th June, 2019. The company decided to transfer the required amount to Debentures Redemption Reserve in three equal annual instalments starting with 31st March, 2017. Required investment was made in Government Securities on 30th April, 2019. Ignore interest on debentures and also investment.
Pass necessary Journal entries regarding issue, transfer to DRR, investment, and redemption of debentures.


Mahima Ltd.issued ₹ 38,00,000, 9% Debentures of ₹ 100 each on 1st April, 2013. The debentures were redeemable at a premium of 5% on 30th June, 2015. The company transferred an amount of ₹ 9,50,000 to Debentures Redemption Reserve on 31st March, 2015. Investments as required by law were made in fixed deposit of a bank on 1st April, 2015.
Ignoring interest on fixed deposit ,pass necessary journal entries starting from  31st March, 2015 regarding redemption of debentures  .


On 1st April, 2013 the following balances appeared in the books of Blue and Green Ltd.:
12%Debentures (Redeemable on 31st August, 2015)   
₹ 20,00,000
Debentures Redemption Reserve ₹ 2,00,000.
The company met the requirements of Companies Act, 2013 regarding Debentures Redemption Reserve and Debentures Redemption Investments and redeemed the debentures.
Ignoring interest on investments, pass necessary journal entries for the above transactions in the books of company.


Rich sugar Ltd. issued ₹ 20 Lakh,8% Debentures divided into debentures of ₹ 100 each on 1st April, 2013, redeemable in four equal annual installments starting from 31st March,2016. The company decided to transfer to Debentures Redemption Reserve  ₹ 2,50,000 each year on 31st March,2014 and 2015.
The company invested ₹ 3,00,000 in Government securities as required by the Companies Act, 2013.
Pass necessary journal entries for the above transactions.


Tata Motors Ltd. issued 40,000;7% Debentures of ₹ 100 each on 1st July,2009 redeemable at premium of 5% as under:
On 31st March,2015                         16,000 Debentures
On 31st March,2016                         16,000 Debentures
On 31st March,2017                            8,000 Debentures
It was decided to transfer amount out of profit  to Debentures Redemption Reserve  ₹ 2,00,000 on 31st March, 2012; ₹ 4,00,000 on 31st March , 2013 and balance on 31st March, 2014. It invested the required amount in terms of the Companies Act, 2013 in Government Securities and decided to realise them after last redemption . Paas journal entries ignoring interest .


No debenture redemption reserve is required for debentures issued by ______.


Relay Ltd. (an unlisted Non NBFC) redeems its 8,000, 10% Debentures of ₹ 100 each in instalments as follows:

Date of Redemption Debentures to be redeemed
31st March, 2019 2,000
31st March, 2020 5,000
31st March, 2021 1,000

On the basis of the above details, what will be the amount of Debenture Redemption Reserve which the company will transfer to General Reserve on 31st March, 2021?


What is the maximum amount of debentures which an unlisted company, other than a NBFC and HFC, can redeem out of its capital?


On 1st April, 2017, Gabriel Ltd., a listed company, issued 3,000, 8% Debentures of ₹ 100 each. One-third of the Debentures were redeemed at par on 31st March, 2021 and the remaining two-third on 31st March, 2022. The company paid interest on debentures annually on 31st March.

After meeting the requirements of the Companies Act, 2013, regarding Debenture Redemption Investment, the company redeemed the debentures.

You are required to record necessary journal entries in the books of the company only on 31st March, 2022; including entries for interest on debentures.


On 1st April, 2022, the following balances appeared in the books of Alpha Pvt. Ltd.

9% Debentures redeemable on 31st March, 2023, at a premium of 2% ₹ 50,00,000
Debenture Redemption Reserve ₹ 5,00,000

The Debenture Redemption Investment, which was purchased by the company on 1st April, 2022, was realised at 101% on the date of redemption and the debentures were redeemed on the due date. 

You are required to prepare the following accounts for the year 2022-23 in the books of Alpha Pvt. Ltd.

  1. Debenture holders’ Account.
  2. Debenture Redemption Investment Account.

Ronny Ltd. (an unlisted construction company) redeems its 7,000, 10% Debentures of ₹100 each at a premium of 5% in instalments, as follows:

Date of Redemption Debentures to be redeemed
31st March, 2022 2,000
31st March, 2023 3,000
31st March, 2024 2,000

You are required to prepare for the year 2023-24:

  1. General Reserve Account.
  2. Debenture holders’ Account. (Ignore interest on Debentures).

Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×