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प्रश्न
XYZ Ltd. Issued 6,000, 12% Debentures of ? 50 each on April 1, 2014. Interest on these debenture is payable annually 3151 March each year. The debentures are redeemable in four equal installments at end of third, fourth, fifth and sixth year. You are required to pan journal entries at the time of issue and redemption of debentures in the books of the company under following cases:
- Debentures are issued at par and redeemable at par.
- Debentures are issued at a premium of 10% and redeemable at par.
- Debentures are issued at a discount of 10% and redeemable at par.
- Debenture are issued at par but redeemable at a premium of 10%.
- Debentures are issued at a premium of 10% and redeemable at premium of 10%.
- Debenture are issued at a discount of 10% and redeemable at a premium of 10%.
उत्तर
(i) Debentures are issued at par and redeemable at par.
| In the books of XYZ Ltd. Journal Entries |
||||
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
| 1. | Bank A/c ...Dr. | 3,00,000 | ||
| To Debenture application and allotment A/c | 3,00,000 | |||
| (Being debenture amount received) | ||||
| 2. | Debenture application and allotment A/c ...Dr. | 3,00,000 | ||
| To 12% Debenture A/c | 3,00,000 | |||
| (Being amount transfer to debenture) | ||||
| 3. | 12% Debenture A/c ...Dr. | 75,000 | ||
| To Debenture holder A/c | 75,000 | |||
| (Being amount transfer to debenture holder) | ||||
| 4. | Debenture holder A/c ...Dr. | 75,000 | ||
| To Bank A/c | 75,000 | |||
| (Being amount paid to debenture holder) | ||||
(ii) Debentures are issued at a premium of 10% and redeemable at par.
| In the books of XYZ Ltd. Journal Entries |
||||
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
| 1. | Bank A/c ...Dr. | 3,30,000 | ||
| To Debenture application and allotment A/c | 3,30,000 | |||
| (Being debenture amount received) | ||||
| 2. | Debenture application and allotment A/c ...Dr. | 3,30,000 | ||
| To 12% Debenture A/c | 3,00,000 | |||
| To Securities Premium A/c | 30,000 | |||
| (Being amount transfer to debenture) | ||||
| 3. | 12% Debenture A/c ...Dr. | 75,000 | ||
| To Debenture holder A/c | 75,000 | |||
| (Being amount transfer to debenture holder) | ||||
| 4. | Debenture holder A/c ...Dr. | 75,000 | ||
| To Bank A/c | 75,000 | |||
| (Being amount paid to debenture holder) | ||||
(iii) Debentures are issued at a discount of 10% and redeemable at par.
| In the books of XYZ Ltd. Journal Entries |
||||
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
| 1. | Bank A/c ...Dr. | 2,70,000 | ||
| To Debenture application and allotment A/c | 2,70,000 | |||
| (Being debenture amount received) | ||||
| 2. | Debenture application and allotment A/c ...Dr. | 2,70,000 | ||
| Loss on issue of Debenture A/c ...Dr. | 60,000 | |||
| To 12% Debenture A/c | 3,00,000 | |||
| To Premium on Redemption A/c | 30,000 | |||
| (Being amount transfer to debenture) | ||||
| 3. | 12% Debenture A/c ...Dr. | 75,000 | ||
| Premium on Redemption A/c ...Dr. | 7,500 | |||
| To Debenture holder A/c | 82,500 | |||
| (Being amount transfer to debenture holder) | ||||
| 4. | Debenture holder A/c ...Dr. | 82,500 | ||
| To Bank A/c | 82,500 | |||
| (Being amount paid to debenture holder) | ||||
(iv) Debenture are issued at par but redeemable at a premium of 10%.
| In the books of XYZ Ltd. Journal Entries |
||||
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
| 1. | Bank A/c ...Dr. | 3,00,000 | ||
| To Debenture application and allotment A/c | 3,00,000 | |||
| (Being debenture amount received) | ||||
| 2. | Debenture application and allotment A/c ...Dr. | 3,00,000 | ||
| Loss on issue of Debenture A/c ...Dr. | 30,000 | |||
| To 12% Debenture A/c | 3,00,000 | |||
| To Premium on Redemption A/c | 30,000 | |||
| (Being amount transfer to debenture) | ||||
| 3. | 12% Debenture A/c ...Dr. | 75,000 | ||
| Premium on Redemption A/c ...Dr. | 7,500 | |||
| To Debenture holder A/c | 82,500 | |||
| (Being amount transfer to debenture holder) | ||||
| 4. | Debenture holder A/c ...Dr. | 82,500 | ||
| To Bank A/c | 82,500 | |||
| (Being amount paid to debenture holder) | ||||
(v) Debentures are issued at a premium of 10% and redeemable at premium of 10%.
| In the books of XYZ Ltd. Journal Entries |
||||
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
| 1. | Bank A/c ...Dr. | 3,30,000 | ||
| To Debenture application and allotment A/c | 3,30,000 | |||
| (Being debenture amount received) | ||||
| 2. | Debenture application and allotment A/c ...Dr. | 3,30,000 | ||
| Loss on issue of Debenture A/c ...Dr. | 30,000 | |||
| To 12% Debenture A/c | 3,00,000 | |||
| To Securities Premium A/c | 30,000 | |||
| To Premium on Redemption A/c | 30,000 | |||
| (Being amount transfer to debenture) | ||||
| 3. | 12% Debenture A/c ...Dr. | 75,000 | ||
| Premium on Redemption A/c ...Dr. | 7,500 | |||
| To Debenture holder A/c | 82,500 | |||
| (Being amount transfer to debenture holder) | ||||
| 4. | Debenture holder A/c ...Dr. | 82,500 | ||
| To Bank A/c | 82,500 | |||
| (Being amount paid to debenture holder) | ||||
(vi) Debenture are issued at a discount of 10% and redeemable at a premium of 10%.
| In the books of XYZ Ltd. Journal Entries |
||||
| Date | Particulars | L.F. | Dr. (Rs.) | Cr. (Rs.) |
| 1. | Bank A/c ...Dr. | 2,70,000 | ||
| To Debenture application and allotment A/c | 2,70,000 | |||
| (Being debenture amount received) | ||||
| 2. | Debenture application and allotment A/c ...Dr. | 2,70,000 | ||
| Discount on issue of Debenture A/c ...Dr. | 30,000 | |||
| To 12% Debenture A/c | 3,00,000 | |||
| (Being amount transfer to debenture) | ||||
| 3. | 12% Debenture A/c ...Dr. | 75,000 | ||
| To Debenture holder A/c | 75,000 | |||
| (Being amount transfer to debenture holder) | ||||
| 4. | Debenture holder A/c ...Dr. | 75,000 | ||
| To Bank A/c | 75,000 | |||
| (Being amount paid to debenture holder) | ||||
APPEARS IN
संबंधित प्रश्न
Short Answer Question
State the meaning of ‘Debentures issued as a Collateral Security.
Short Answer Question
What is ‘Capital Reserve’?
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.
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When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to ______.
The word 'debenture' has been derived from which Latin word (which means to borrow)?
The debentures are issued with a specified rate of interest, which is called the coupon rate are known as which types of debentures?
Assertion (A): Issue of debenture does not result in dilution of interest of equity shareholders.
Reason (R): Debenture holders have voting rights.
Assertion (A): Debentures saves income tax.
Reason (R): Interest on debenture is tax deductible expenditure.
Debenture premium cannot be used to ______.
Loss on issue of debentures is treated as ______.
Interest on debentures is calculated on ______.
Assertion (A): Sarita Pvt. Ltd. issued 15% 10,000 debentures at par @ ₹ 100 per debenture. The company suffered a loss but still the directors of the company paid interest on debentures.
Reason (R): Interest on debenture is a charge against profits and therefore, its payment is not subject to the earning of profit.
Premium received on issue of debentures may be utilised for writing off:
Madhur Ltd. has outstanding 9% debentures of Rs. 50,00,000 redeemable at par on January 01, 2020. Debenture Redemption Reserve of Rs. 2,00,000 on March 31, 2018 and balance of the required amount of DRR was created on March 31, 2019. The company invested in specified securities (DRI) the required amount on April 01, 2019. Debentures were redeemed on the due date. Record necessary journal entries in the books of the company and also prepare the ledger accounts (ignore interest).
