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प्रश्न
On 1st April 2015, Mayfair Ltd. issued 4,000 9% debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 8%. The debentures were redeemable on 31st March 2019. The company created the necessary minimum amount of debenture redemption reserve and purchased the required amount of debenture redemption investments as per the provisions of Companies Act, 2013.
Pass the necessary journal entries for the redemption of debentures.
उत्तर
In the books of Mayfair Ltd.
Journal
| Date | Particulars | L.F. |
Debit Amount(₹) |
Credit Amount(₹) |
|
| 2018 |
|
|
|||
| March 31 | Surplus i.e. Balance as per Statement of Profit & Loss A/c | Dr. |
1,00,000 |
|
|
| To Debenture Redemption Reserve A/c |
|
1,00,000 |
|||
| Being 25% of 4,000 debentures transferred to DRR) |
|
|
|||
|
|
|
||||
| 2018 April 30 |
Debenture Reserve Investment A/c | Dr. |
60,000 |
|
|
| To Bank A/c |
|
60,000 |
|||
| (Being Debenture Redemption Investment made at 15% for 4,000 debentures ) |
|
|
|||
|
|
|
||||
| 2019 March 31 |
Bank A/c | Dr. |
60,000 |
|
|
| To Debenture Reserve Investment A/c |
|
60,000 |
|||
| (Being debenture reserve securities matured) |
|
|
|||
|
|
|
||||
| 2019 March 31 |
9% Debenture A/c | Dr. |
4,00,000 |
|
|
| Premium on Redemption A/c | Dr. |
32,000 |
|
||
| To Debenture holder’s A/c |
|
4,32,000 |
|||
| (For amount due on debenture holders) |
|
|
|||
|
|
|
||||
| 2019 March 31 |
Debenture holders A/c | Dr. |
4,32,000 |
|
|
| To Bank A/c |
|
4,32,000 |
|||
|
|
(For debentures paid) |
|
|
||
|
|
|
|
|||
|
2019 March 31 |
Debenture Redemption Reserve A/c | Dr. |
1,00,000 |
|
|
| To General Reserve A/c |
|
1,00,000 |
|||
|
|
(For DRR transferred to General reserve) |
|
|
संबंधित प्रश्न
Short Answer Question
What is meant by ‘Premium on Redemption of Debentures’?
Short Answer Question
How would you deal with ‘Premium on Redemption of Debentures’?
Short Answer Question
What is meant by ‘Redemption out of Capital?
Long Answer Question
Explain the guidelines of SEBI for creating Debenture Redemption Reserve.
Long Answer Question
What is meant by conversion of debentures? Describe the method of such a conversion.
X.Ltd. purchased a Machinery from Y for an agreed purchase consideration of Rs 4,40,000 to be satisfied by the issue of 12% debentures of Rs 100 each at a premium of Rs 10 per debenture. Journalise the transactions.
A company issued debentures of the face value of Rs 5,00,000 at a discount of 6% on April 01, 2012. These debentures are redeemable by annual drawings of Rs,1,00,000 made on March 31 each year. The directors decided to write off discount based on the debentures outstanding each year.
Calculate the amount of discount to be written-off each year. Give journal entries also.
A company issued 10% Debentures of the face value of Rs,1,20,000 at a discount of 6% on April 01, 2011. The debentures are payable by annual drawings of Rs 40,000 commencing from the end of third year.
How will you deal with discount on debentures?
Show the discount on debentures account in the company ledger for the period of duration of debentures. Assume accounts are closed on March 31 every year.
Profit on cancellation of own debentures is transferred to ______.
Which of the methods can be adopted to write off discount/loss on issue of debentures against the revenue profits?
Which of the following given statement is correct.
Statement 1 - "Bond and debentures are same in terms of contents and texture."
Statement 2 - "Bond and debentures are not same in terms of contents and texture."
Consider the following statements.
Statement 1 - "No DRR is required for debentures issued by All India Financial Institutions, regulated by RBI and Banking Companies for both public as well as privately placed debentures".
Statement 2 - DRR is required for debentures issued by All India Financial Institutions, regulated by RBI and Banking Companies for both public as well as privately placed debentures"
Give the necessary journal entries at time of redemption of debentures
"X Ltd. issued 500, 9% debentures of Rs.100 each at par and redeemable at par at the end of 5 years out of capital."
Debentures can be redeemed out of:
Which of the following is not true about Debenture Redemption Reserve (DRR)?
Premium on Redemption of Debentures Account is a ______ Account.
Premium on Redemption of Debentures Account is a ______.
Premium on redemption of debentures is generally provided at the time of ______.
