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प्रश्न
On 1st April, 2012, Neptune Finance Company (a listed NBFC) issued 4,000, 9 % Debentures of ₹ 100 each to be redeemed at a premium of 5% on 31st March, 2021.
You are required to pass necessary journal entries for the issue and redemption of debentures.
उत्तर
| In the Books of Neptune Finance Company Journal Entries |
||||
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
| 2012 April 1 |
Bank A/c Dr. To Debenture Application and Allotment A/c |
4,00,000 | 4,00,000 | |
| April 1 | Debenture Application and Allotment A/c Dr. Loss on Issue of Debentures A/c Dr. To 9% Debentures A/c To Premium on Redemption of Debenture A/c (Being 4,000 9% Debentures issued at par and redeemable @ 5% premium) |
4,00,000 |
4,00,000 20,000 |
|
| 2020 April 1 |
Debenture Redemption Investment A/c Dr. To Bank A/c (Being amount invested) |
60,000 | 60,000 | |
| 2021 March 31 |
Bank A/c Dr. To Debenture Redemption Investment A/c (Being DRI realised) |
60,000 | 60,000 | |
| March 31 | 9% Debentures A/c Dr. Premium on Redemption of Debentures A/c Dr. To Debentureholders A/c (Being amount due) |
4,00,000 20,000 |
4,20,000 | |
| March 31 | Debentureholders A/c Dr. To Bank A/c (Being amount paid) |
4,20,000 | 4,20,000 | |
Note: A listed NBFC is not required to create DRR but has to invest 15% of the value in DRI (Debenture Redemption Investment).
Working Notes:
- Premium on Redemption of Debentures = 5 % × ₹ 4,00,000 = ₹ 20,000
- Amount invested in Debenture Redemption Investment = 15% × ₹ 4,00,000 = ₹ 60,000
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संबंधित प्रश्न
On 1.4.2015, KVK Ltd. issued 15,000, 9% debentures of Rs 100 each at a discount of 7%, redeemable t a premium of 10% after 10 years. The company closes its books on 31st March every year. Interest on 9%debentures is payable on 30th September and 31st March every year. The rate of tax deducted at source is 10%.
Pass necessary journal entries for the issue of 9% debentures and debenture interest for the year ended 31.3.2016.
From the following Statement of Profit and Loss of Navratan Ltd. for the year ended 31st March, 2013, prepare a Comparative Statement of Profit and Loss:
| Particulars | Note No. | 2012 – 13 Rs |
2011 – 12 Rs |
| Revenue from operations | 8,05,000 | 6,14,000 | |
| Other Incomes | 43,000 | 51,000 | |
| Expenses | 5,59,000 | 4,88,000 |
Rate of income tax was 40%.
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.
Write one word/term/phrase which can substitute the following
The debentures where a charge is created on the assets of company.
Select most appropriate alternative from those given below :
The issue of debentures less than the face value is called ___________.
Health2Wealth Ltd. had share capital of ₹ 80,00,000 divided in shares of ₹ 100 each and 20,000, 8% Debentures of ₹ 100 each as part of capital employed. The company need additional funds of ₹ 55,00,000 for which they decided to issue debentures in such a way that they got required funds after issuing debentures of the same class as earlier, at 10% premium. These debentures were to be redeemed at 20% premium after 4 years. These debentures were issued on 01 October, 2021.
You are required to
- Pass entries for issue of Debentures.
- Prepare Loss on Issue of Debentures Account assuming there was existing balance of Securities Premium Account of ₹ 2,80,000.
- Pass entries for Interest on debentures on March 31, 2022 assuming interest is payable on 30 September and 31 March every year.
Pass necessary journal entries for the issue of debentures in the following cases :
- Issued ₹ 7,00,000, 9% debentures of ₹ 100 each at a premium of 20% redeemable at a premium of 10% after 6 years.
- Issued 10,000, 12% debentures of ₹ 100 each at 10% discount redeemable at a premium of 5% after 5 years.
- Issued 75,000, 12% debentures of ₹ 100 each at par, redeemable at premium of 10% after three years.
Which of the following statement is incorrect with respect to debentures?
Alexa Ltd. purchased building from Siri Ltd for ₹ 8,00,000. The consideration was paid by issue of 6% debentures of ₹ 100 each at a discount of 20%. The 6% Debentures account is credited with ______.
The following balances have been extracted from the books of Nirvana Ltd, as at 31st March, 2024:
| Particulars | (₹) | Particulars | (₹) |
| Security deposit for electricity for ten years | 30,000 | Uncalled amount on partly paid-up shares | 8,00,000 |
| Underwriting commission | 20,000 | 10% Debentures | 5,00,000 |
| General Reserve | 70,000 | Statement of P/L (Dr.) | 10,000 |
| Fixed Deposits | 2,00,000 | Calls-in arrears @ ₹ 1 per share | 40,000 |
| Premium on redemption of Debentures | 20,000 | Securities Premium | 2,00,000 |
| Equity Share Capital (1,00,000 shares of ₹ 10 each) |
10,00,000 |
You are required to show the above items in Notes to Accounts accompanying the Balance Sheet of Nirvana Ltd. prepared as per Schedule III of the Companies Act 2013 as at 31st March, 2024.
