Commerce (English Medium) Class 12 - CBSE Important Questions for Accountancy

On 1.4.2015, GGY Ltd. issued 3000, 9% debentures of Rs 100 each at a discount of 6%, redeemable at a premium of 10% after five years. The company closes its books on 31^st March every year. Interest on 9% debentures is payable on 30^th September and 31^st March. Rate of tax deducted at source is 10%.
Pass necessary journal entries for the issue of 9% debentures and interest for the year ended 31^st March, 2016.  

Pass necessary journal entries on dissolution of a firm in the following cases:   

(i) Dissolution expenses were Rs 4,500.
(ii) Dissolution expenses Rs 5,000 were paid by a partner, Sudhir.
(iii) Sudha, a partner, agreed to do the dissolution work for a commission of Rs 7,300. She also agreed to bear the dissolution expenses. Actual dissolution expenses paid by Sudha were Rs 7,500.
(iv) Somesh, a partner, agreed to do the dissolution work for a commission of Rs 5,000. He also agreed to bear the dissolution expenses. Actual dissolution expenses Rs 4,750 were paid from the firm's bank account.
(v) Sheetal, a partner, was appointed to look after the dissolution work for a remuneration of Rs 8,000. She also agreed to bear the dissolution expenses. Actual dssolution expenses Rs 7,500 were paid by Smita, another partner, on behalf of Sheetal.
(vi) Somaya, a partner, was appointed to look after the dissolution process for a remuneration of Rs 11,000. Somaya agreed to bear the dissolution expenses. Somaya took over stock of the same value as her remuneration. The stock had already been transferred to realisation account.

On 1.4.2015, Neena Ltd. issued 800, 9% debentures of Rs 100 each at a discount of 5%, redeemable at a premium of 8% after five years. The company closes its books on 31^st March every year. Interest on 9% debentures is payable on 30^th September and 31^st March. Rate of tax deducted at source is 10%.
Pass necessary journal entries for the issue of 9% debentures and payment of interest on 9% debentures for the year ended 31^st March, 2016.

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

Pass necessary journal entries in the following cases:
 Kim India Ltd. converted 1,000, 9% debentures of Rs 100 each issued at a discount of 10% into equity shares of Rs 100 each issued at a premium of 25%.

Sonali Ltd. redeemed 6,000, 12% debentures of Rs 100 each which were issued at a discount of Rs 10 per debentures by converting them into equity shares of Rs 100 each, Rs 90 paid up.

From the following Statement of Profit and Loss of Navratan Ltd. for the year ended 31^st March, 2013, prepare a Comparative Statement of Profit and Loss: 

Rate of income tax was 40%.

Give any one advantage for the redemption of debentures by purchase in the open market?

Narain Laxmi Ltd. invited applications for issuing 7500, 12% Debentures of Rs100 each at a premium of Rs 35 per Debenture. The full amount was payable on application.

Applications were received for 10,000 Debentures. Applications for 2500 Debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants.

Pass necessary Journal Entries for the above transactions in the books of Narain Laxmi Ltd.

Shakti Ltd. decided to redeem its 750, 12% Debentures of Rs 100 each. The company purchased 500 Debentures at Rs 94 per Debenture from the open market. The remaining debentures were redeemed out of profits. The company had already made a provision for Debenture Redemption Reserve in its books.

Pass necessary Journal Entries in the books of the company for the above transactions.

Pass the necessary Journal entry when 10,000 debentures of Rs 100 each are issued as collateral security against a Bank loan of Rs 8,00,000

X Ltd. redeemable 100, 6% Debentures of Rs 100 each by converting them into Equity Shares of Rs 100 each. The 6% Debentures were redeemable at 10% premium for which the Equity Shares were issued at 25% premium. Pass the necessary Journal entries for the redemption of above mentioned debentures in the books of X Ltd.

Pass the necessary Journal entries of the issues and redemption of Debentures in the following cases:

(i) 10,000, 10% Debentures of Rs 120 each issued at 5% premium, repayable at par.

(ii) 20,000, 9% Debentures of Rs 200 each issued at 20% premium, repayable at 30% premium.

On 1^st April, 2008 a company made an issue of Rs 2,00,000, 6% Debentures of Rs 100 each, repayable at a premium of 10%. The terms of issue provided for the redemption of 400 debentures every year starting from the end of 31-3-2010 either by purchase from the open market or by draw of lots at the company’s option.

On 31-3-2010, the company purchased for cancellation 300 debentures at 95% and 100 debentures at 90%.

Pass the necessary Journal entries for the issue and redemption of debentures assuming that the company had already created the

Debentures Redemption Reserve A/c by the require amount.

Give the average period in months for charging interest on drawings for the same amount withdraws at the beginning of each quarter. 

Give the meaning of ‘Issue of Debentures as a collateral security.’

Nav Lakshmi Ltd. Invited application for issuing 3,000, 12% Debentures of Rs 100 each at a premium of Rs 50 per Debentures. The full amount was payable on application.

Applications were received for 4,000 debentures. Application for 1,000 debentures were rejected and application money was refunded. Debentures were allotted to the remaining applicants.

Pass necessary Journal entries for the above transaction in the books of Nav Lakshmi Ltd 

Sarvottam Ltd. Decided to redeem its 1250, 12% Debentures of Rs 100 each. It purchased 850 Debentures from the open market at Rs 96 per Debenture. The remaining Debenture were redeemed out of profit. The company has already made a provision for Debenture Redemption Reserve in its books.

Pass necessary Journal entries in the books of the company for the above transaction.

Pass necessary Journal entries for the following transaction in the books of Fortune Ltd:

(i) Redeemed Rs 96,000, 12% Debenture by conversion into Equity Shares of Rs 100 each. The

Equity Shares were issued at a discount 4%.

(ii) Converted 4,800, 12% Debentures of Rs 100 each into New 13% Debentures of Rs 100 each.

The new Debentures were issued at a premium 25%.

DN Ltd. issued 50,000 shares of Rs 10 each at a discount of 10% payable as Rs 2 per share on application Rs 3 on allotment and Rs 2 each on first and final call. Applications were received for 70,000 shares. It was decided that

(a) Refuse allotment to the applicants of 10,000 shares,

(b) Allot 10,000 shares to Mohan who had applied for a similar number, and

(c) Allot the remaining share on a pro-rata basis.

Mohan failed to pay the allotment money and Sohan who belonged to category (c) and was allotted 3,000 shares, paid both the calls with allotment, Calculate the amount received on allotment.