Arts (English Medium) Class 12 - CBSE Important Questions

BG. Ltd. issued 2,000, 12% debentures of Rs.100 each on 1st April 2012. The issue was fully subscribed. According to the terms of issue, interest on the debentures is payable half-yearly on 30th September and 31st March and the tax deducted at source is 10%. Pass necessary journal entries related to the debenture interest for the half-yearly ending 31st March, 2013 and transfer of interest on debentures of the year to the Statement of Profit & Loss.

'Ananya Ltd' had an authorized capital of Rs 10,00,00,000 divided into 10,00,000 equity shares of Rs 100 each. The company had already issued 2,00,000 shares. The dividend paid per share for the year ended 31.3.2007 was Rs 30. The management decided to export its products to African countries. To meet the requirements of additional funds, the finance manager put up the following three alternate proposals before the Board of Directors:

(1) Issue 47,500 equity shares at a premium of Rs 100 per share.
(2) Obtain a long-term loan from the bank which was available at 12% per annum.
(3) Issue 9% debentures at a discount of 5%.

After evaluating these alternatives the company decided to issue 1,00,000, 9% debentures on 1.4.2008. The face value of each debenture was Rs 100. These debentures were redeemable in four installments starting from the end of the third year, which was as follows:

Prepare 9% debenture account from 1.4.2008 till all the debentures were redeemed.

Tata Ltd. issued 5,000, 10% Debentures of Rs 100 each on 1st April 2012. The issue was fully subscribed. According to the terms of issue, interest on debentures is payable half-yearly on 30th September and 31st March and tax deducted at source is 10%.
Pass the necessary journal entries related to the debenture interest for the half-yearly ending on 31st March 2013 and transfer of interest on debentures to Statement of Profit and Loss.

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.

Hero Ltd. purchased plant and machinery for ₹ 18,00,000 from Pearl Machines Ltd. payable ₹ 3,00,000 by drawing a promissory note and the balance by the issue of 9% debentures of ₹ 100 each at a premium of 20%.
Pass the necessary journal entries in the books of Hero Ltd. for the above transactions.

BGP Ltd. invited applications for issuing 15,000, 11% debentures of ₹ 100 each at a premium of ₹ 50 per debenture. The full amount was payable on application. Applications were received for 25,000 debentures. Applications for 5,000 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants on a pro-rata basis.
Pass the necessary journal entries for the above transactions in the books of BGP Ltd.

Agam Ltd. issued 40,000 9% debentures of ₹ 100 each on April 1, 2018, at a discount of 10%, redeemable at a premium of 10%. Assuming that the interest was paid half-yearly on September 30 and March 31 and the tax deducted at source was 10%, give journal entries relating to debenture interest for the half-year ended March 31, 2019.

Pass journal entries relating to issue of debentures for the following transactions:

1. Issued 8,000, 10% debentures of ₹ 100 each at a discount of 10%, redeemable at 5% premium.
2. Issued 4,000, 12% debentures of ₹ 100 each at 10% premium, redeemable at 6% premium.
3. Issued ₹ 1,00,000, 9% debentures of ₹ 100 each at par redeemable at par.
4. Issued ₹ 5,00,000, 9% debentures of ₹ 100 each at 10% premium redeemable at par.
5. Issued ₹ 6,000, 9% debentures of ₹ 100 each at a discount of 10% redeemable at par.

X Ltd. purchased assets of ₹ 18,00,000 and took over liabilities of ₹ 6,00,000 of Y Ltd. for a purchase consideration of ₹ 10,00,000. The payment to Y Ltd. was made by issue of 9% debentures of ₹ 100 each at ₹ 125. Calculate the number of 9% debentures issued in favour of Y Ltd. and pass the necessary journal entries for the above transactions in the books of X Ltd.

Pass necessary journal entries for the issue of debentures in the following cases:

1. Issued 50,000, 9% debentures of ₹ 100 each at par redeemable at par.
2. Issued 10,000, 8% debentures of ₹ 100 each at 7% premium redeemable at par.
3. Issued 750, 8% debentures of ₹ 100 each at 10% discount redeemable at par.
4. Issued 1,000, 9% debentures of ₹ 100 each at 5% premium redeemable at 8% premium.
5. Issued 500, 9% debentures of ₹ 100 each at 10% discount redeemable at 10% premium.

Elite Ltd. issued 20,000, 9% Debentures of ₹ 100 each at a discount of 10%, redeemable at a premium. On issue of these debentures, 'Loss on Issue of debentures account' was debited with ₹ 4,00,000. The premium on redemption of debentures is ______.

Sinco Ltd. purchased assets of the book value of ₹ 1,98,000 from Dixon Ltd. It was agreed that the purchase consideration be paid by issuing 10% debentures of 100 each.

Record the necessary journal entries in the books of Sinco Ltd. assuming that the debentures have been issued:

1. At a discount of 10%.
2. At a premium of 10%.

Which of the following statement is incorrect with respect to debentures?

PremierAuto Ltd. purchased assets of the value of ₹ 3,60,000 from Anand Ltd. and made the payment of purchase consideration by issuing 11%. Debentures of ₹ 100 each at a discount of 10%. The number of debentures issued by Premier Auto Ltd. were ______.

Chiranjeevi Limited issued 2,000, 10% debentures of ₹ 100 each. Pass the necessary Journal entries for the issue of debentures in the following cases:

1. When debentures were issued at 10% premium, redeemable at 5% premium.
2. When debentures were issued at 5% discount, redeemable at 10% premium.
3. When debentures were issued at par, redeemable at a premium of 10%

On 1.4.2021 Y Ltd. invited applications for issuing 10,000, 9% debentures of ₹ 100 each at a discount of 6%. The entire amount was payable with application. Application for 12,000, 9% debentures were received. 9% debentures were allotted on pro-rata basis to all the applications. Excess money received with applications was refunded.
On 31.3.2022 the company decided to write off discount on issue of debentures according to the provisions of the Companies Act, 2013. On that date the company had ₹ 10,000 in its securities premium reserve account.

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

'Management is the process of getting things done.' State the meaning of the term 'process' used in this statement.

Explain any four features of management.

‘K.S. Energy Ltd.’ was a energy efficiency consultancy company. To get the business the team leader and his team used to travel to different states to give presentation to their clients. As per the policy of the company, the team leader used to travel by air, whereas his team travelled by road/train. It was not only time consuming but also at times forced female team members to travel alone. As a result, the subordinates were not acting in a desired manner to achieve organizational goals. The CEO came to know about it. He called the team leader, discussed the matter with him and changed the travel policy of the company. It was decided that all the members including the leader would travel together in future and would usefully utilize the travelling time in discussion with the subordinates about the presentation to be given to the clients. This made a positive impact and
every member of the team started acting in a manner as desired by the team leader.

State the features of the element of the function of management used by the CEO.

How does management help in achieving personal objectives? State.