Advertisement Remove all ads

Pass Necessary Journal Entries in the Following Cases Jain Ltd. Converted 2,000, 12% Debentures of `100 Each Issued at an into Equity Share of `100 Each Issued at a Premium of 25%. - Accountancy

Pass necessary journal entries in the following cases

Jain Ltd. converted 2,000, 12% debentures of  Rs 100 each issued at an into equity share of Rs 100 each issued at a premium of 25%.

Advertisement Remove all ads

Solution

Jain Ltd.
Journal
Date Particulars L.F

Dr.

Rs

Cr.

Rs

 

12% Debenture A/c   Dr. 

    To Debenture holder A/c

(Being 2,000 12% debenture of Rs 100 each due for
redemption)

 

2,00,000

 

 

 

2,00,000

 

Debenture A/c       Dr.

    To Equity share capital A/c   Dr.

    To Securities Premium A/c

(Being 1,600 equity share of Rs 100 each issued at the premium of 25% to debenture holders)

2,00,000

 

 

 

 

 

1,60,000

40,000

 

 

Number of shares to be issued = `"Amount Payable"/"Issue Price" = "2,00,000"/((100 - 25)) = 250000/125` = 1,600 share

Concept: Share Capital - Issue and Allotment of Equity Shares
  Is there an error in this question or solution?
Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×