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प्रश्न
On 1st April, 2022, Resorts Ltd. (a listed construction company) had 60,000, 5% Debentures of ₹ 100 each due for redemption at par on 31st March, 2023.
As per the law, investment was made in a fixed deposit of a bank on 30th April, 2022, earning interest @ 5% per annum.
Tax @ 10% was deducted by the bank on the interest.
You are required to pass necessary journal entries in the year of redemption of debentures, including entries for interest on Debenture Redemption Investment. (Ignore the interest on Debentures)
उत्तर
| In the Books of Resorts Ltd. Journal Entry |
||||
| Date | Particulars | L. F. | Dr. (₹) | Cr. (₹) |
|
2022 |
||||
|
1st April |
Surplus in Statement of Profit & Loss ...Dr. | 6,00,000 | ||
| To Debenture Redemption Reserve A/c | 6,00,000 | |||
| (Being 10% debenture redemption reserve A/c) | ||||
| 30th April | Debenture Redemption Investment A/c ...Dr. | 9,00,000 | ||
| To Bank A/c | 9,00,000 | |||
| (Being Debenture Redemption Investment made @ 15% of a debenture value to be redeemed) | ||||
|
2023 |
||||
| 31st Mar. | Bank A/c ...Dr. | 9,37,125 | ||
| TDS collected (Receivable) A/c ...Dr. | 4,125 | |||
| To Debenture Redemption Investment A/c | 9,00,000 | |||
| To Interest on Debenture Redemption Investment A/c `(9,00,000xx5/100xx11/12)=41,250` | 41,250 | |||
| (Being investments encashed) | ||||
| 31st Mar. | 5% Debentures A/c ...Dr. | 60,00,000 | ||
| To Debentureholders A/c | 60,00,000 | |||
| (Being amount payable to debenture holders made due) | ||||
| 31st Mar. | Debentureholders A/c ...Dr. | 60,00,000 | ||
| To Bank A/c | 60,00,000 | |||
| (Being payment to debentureholders) | ||||
| 31st Mar. | Interest on Debenture Redemption Investment A/c ...Dr. | 41,250 | ||
| To Statement of Profit & Loss | 41,250 | |||
| (Being interest received on investments transferred to statement of profit & loss) | ||||
| 31st Mar. | Debenture Redemption Reserve A/c ...Dr. | 6,00,000 | ||
| To General Reserve A/c | 6,00,000 | |||
| (Being balance of debenture redemption reserve transferred to General reserve) | ||||
APPEARS IN
संबंधित प्रश्न
State the provisions of the Companies Act, 2013 for the creation of 'Debenture Redemption Reserve'.
Star Ltd. is a manufacturer of chemical fertilisers. Its annual turnover is ₹ 50 crores. The company had issued 5,000, 12% Debentures of ₹ 500 each at par. Calculate the amount of Debentures Redemption Reserve which needs to be created to meet the requirements of law.
Nirbhai Chemicals Ltd. issued ₹ 10,00,000; 6% Debentures of ₹ 50 each at a premium of 8% on 30th June, 2018 redeemable on 30th June, 2019. The issue was fully subscribed. Pass Journal entries for issue and redemption of debentures. How much amount should be transferred to Debentures Redemption Reserve before redemption of debentures? Also, state how much amount should be invested in specified securities?
| On 31st March, 2018, W Ltd. had the following balances in its books: | ₹ |
| 9% Debentures | 6,00,000 |
| Debentures Redemption Reserve | 50,000 |
| Surplus,i.e., Balance in Statement of Profit and Loss | 3,00,000 |
On that date, the company decided to transfer ₹ 1,00,000 to Debentures Redemption Reserve. It also decided to redeem debentures of ₹ 3,00,000 on 30th June, 2018.
Pass necessary Journal entries in the books of the company.
Godrej Ltd. has 20,000; 7% Debentures of ₹ 100 each due for redemption on 31st August, 2018. There is a balance of ₹ 3,50,000 in Debentures Redemption Reserve Account as on 31st March, 2016. Investment, as required by the Companies Act, 2013 is made on 1st April, 2017 in fixed deposit bearing interest @ 6% p.a. Bank deducted TDS @ 10% on its maturity which is 31st March, 2018.
Pass Journal entries for redemption of debentures.
Apollo Ltd.issued 21,000; 8% Debentures of ₹ 100 each on 1st April, 2013 redeemable at a premium of 8% on 30th June, 2019. The company decided to transfer the required amount to Debentures Redemption Reserve in three equal annual instalments starting with 31st March, 2017. Required investment was made in Government Securities on 30th April, 2019. Ignore interest on debentures and also investment.
Pass necessary Journal entries regarding issue, transfer to DRR, investment, and redemption of debentures.
Rich sugar Ltd. issued ₹ 20 Lakh,8% Debentures divided into debentures of ₹ 100 each on 1st April, 2013, redeemable in four equal annual installments starting from 31st March,2016. The company decided to transfer to Debentures Redemption Reserve ₹ 2,50,000 each year on 31st March,2014 and 2015.
The company invested ₹ 3,00,000 in Government securities as required by the Companies Act, 2013.
Pass necessary journal entries for the above transactions.
Choose the appropriate alternative from the given options:
No debenture redemption reserve is required for debentures issued by :
Sunrise Ltd. a listed NBFC, had outstanding 20,000, 7% Debentures of ₹ 100 each, due for redemption on 31st March, 2022.
As per the provisions of the Companies Act, 2013, what amount, if any, does the company need to transfer to Debenture Redemption Reserve, before it can redeem the debentures?
Jerome Ltd., an unlisted manufacturing company, had 20,000, 6% Debentures of ₹ 100 each due for redemption at par on 31st March, 2022. On this date the company had the required amount of ₹ 2,00,000 in its Debenture Redemption Reserve.
The Debenture Redemption Investment which was purchased on 30th April, 2021, was realised at 98% on the date of redemption and the debentures were redeemed on the due date.
You are required to pass journal entries in the books of the company for the year 2021-22. (Ignore interest on debentures).
