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प्रश्न
B. Ltd. issued debentures at 94% for Rs 4,00,000 on April 01, 2011 repayable by five equal drawings of Rs 80,000 each. The company prepares its final accounts on March 31 every year.
Indicate the amount of discount to be written-off every accounting year assuming that the company decides to write-off the debentures discount during the life of debentures. (Amount to be written-off: 2012 Rs 8,000; 2013 Rs 6,400; 2014 Rs 4,800; 2015 Rs 2,000; 2016 Rs 1,600).
उत्तर
Debenture issued = `4,00,000 " @ " 94%`
Discount on issue = `6%`
Amount on discount on issue of debenture = `4,00,000 xx 6/100 = 24,000`
Amount of discount to written off every year
In 2012 = ₹8,000
In 2013 = ₹6,400
In 2014 = ₹4,800
In 2015 = ₹3,200
In 2016 = ₹1,600
Working Notes:
|
Year |
Debentures Outstanding |
Ratio |
Months |
New Ratio (Ratio × Months) |
Amounts written off |
|
2012 |
|
|
|
|
|
|
Apr-Mar |
3,20,000 |
5 |
12 |
60 |
`24,000 xx 60/180 = 8,000` |
|
2013 |
|
|
|
|
|
|
Apr-Mar |
2,40,000 |
4 |
12 |
48 |
`24,000 xx 48/180 = 6,400` |
|
2014 |
|
|
|
|
|
|
Apr-Mar |
1,60,000 |
3 |
12 |
36 |
`24,000 xx 36/180 = 4,800` |
|
2015 |
|
|
|
|
|
|
Apr-Mar |
80,000 |
2 |
12 |
24 |
`24,000 xx 24/180 = 3,200` |
|
2016 |
|
|
|
|
|
|
Apr-Mar |
80,000 |
1 |
12 |
12 |
`24,000 xx 12/180 = 1,600` |
|
|
|
|
|
180 |
|
Note: As per NCERT, ₹2,000 discount has been written off in the year 2015 which is incorrect because then the total discount amounts to ₹22,800. Therefore, it should be ₹3,200.
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संबंधित प्रश्न
Short Answer Question
What is meant by ‘Issue of debentures for Consideration other than Cash’?
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What Journal entries will be made in the following three cases, if debentures are issued: (a) at par; (b) at discount; (c) at premium of 10%? It was agreed that any fraction of debentures be paid in cash.
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.
B. Ltd. issued 1,000, 12% debentures of Rs 100 each on April 01, 2014 at a discount of 5% redeemable at a premium of 10%.
Give journal entries relating to the issue of debentures and debentures interest for the period ending March 31, 2015 assuming that interest is paid half yearly on September 30 and March 31 and tax deducted at source is 10%.
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Applications were received for 13,500 debentures. Applications for 3,500 debentures were rejected and application money was refunded . Debentures were allotted to the remaining applications .
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(iii) Balance as first and final call.
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Pass Journal entries .
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The company decided to issue 1,000,6% Debentures of ₹ 100 each to Amrit and Bhaskar each for their services in incorporating the company.
Pass journal entry.
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Pass Journal entries in the books of Deepak Ltd.
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Case (a): The debentures are issued at par.
Case (b): The debentures are issued at 20% premium.
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Exe Ltd. purchased the assets of the book value ₹4,00,000 and took over the liabilities of ₹ 50,000 from Mohan Bros.It was agreed that the purchase consideration ,settled at ₹3,80,000 be paid by issuing debentures of ₹ 100 each.
Pass journal entries if debenture are issued:
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(c) at a premium of 10%.
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Pass Journal entries for the issue of these debentures.
Excess value of net assets over purchase consideration at the time of purchase of business is credited to ______.
Which of the following situations are commonly found in practice during the issue and redemption of debentures?
Which of the following. column indicated in·the statement given below is to be credited?
"Writing off the loss on issue of debentures"
The loss on issue of Debentures is written-off from ______.
Debenture premium cannot be used to ______.
Premium received on issue of debentures may be utilised for writing off:
X Ltd. had outstanding 20,000 12% debentures of Rs. 100 each redeemable on June 30, 2019. Record necessary journal entries at the time of redemption.
