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प्रश्न
B.Ltd. purchased assets of the book value of Rs 4,00,000 and took over the liability of Rs 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at Rs,3,80,000, be paid by issuing debentures of Rs 100 each.
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.
उत्तर
Case (a)
Book of B. Ltd.
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|||
|
|
Sundry Assets A/c |
Dr. |
|
4,00,000 |
|
||
|
|
Goodwill A/c |
Dr. |
|
30,000 |
|
||
|
|
|
To Sundry Liabilities A/c |
|
|
50,000 |
||
|
|
|
To Mohan Bros. |
|
|
3,80,000 |
||
|
|
(Assets and liabilities of Mohan Bros. taken over) |
|
|
|
|||
|
|
Mohan Bros. |
Dr. |
|
3,80,000 |
|
||
|
|
|
To Debenture A/c |
|
|
3,80,000 |
||
|
|
(3,800 debentures of 100 each issued to Mohan Bros. in consideration of assets and liabilities) |
|
|
||||
Case (b)
|
Sundry Assets A/c |
Dr. |
|
4,00,000 |
|
|||
|
|
Goodwill A/c |
Dr. |
|
30,000 |
|
||
|
|
|
To Sundry Liabilities A/c |
|
|
50,000 |
||
|
|
|
To Mohan Bros. |
|
|
3,80,000 |
||
|
|
(Assets and liabilities of Mohan Bros. taken over) |
|
|
|
|||
|
|
Mohan Bros. |
Dr. |
|
3,80,000 |
|
||
|
|
Discount on Issue of Debenture A/c |
Dr. |
|
42,222 |
|
||
|
|
|
To Debenture A/c |
|
|
4,22,200 |
||
|
|
|
To Bank A/c |
|
|
22 |
||
|
|
(Issued 4,222 debentures of Rs 100 each at 10% discount and balance paid in cash) |
|
|
|
|||
Case (c)
|
Sundry Assets A/c |
Dr. |
|
4,00,000 |
|
|||
|
|
Goodwill A/c |
Dr. |
|
30,000 |
|
||
|
|
|
To Sundry Liabilities A/c |
|
|
50,000 |
||
|
|
|
To Mohan Bros. |
|
|
3,80,000 |
||
|
|
(Assets and liabilities of Mohan Bros. taken over) |
|
|
|
|||
|
|
Mohan Bros |
Dr. |
|
3,80,000 |
|
||
|
|
|
To Debentures A/c |
|
|
3,45,400 |
||
|
|
|
To Securities Premium A/c |
|
|
34,540 |
||
|
|
|
To Bank A/c |
|
|
60 |
||
|
|
(Issued of 3,454 debentures at 10% premium and balance paid in cash) |
|
|
|
|||
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संबंधित प्रश्न
Short Answer Question
State the meaning of ‘Debentures issued as a Collateral Security.
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).
Iron Products Ltd. issued 5,000; 9% Debentures of ₹ 100 each at a premium of ₹ 40 payable as follows;
(i) ₹ 40 , including premium of ₹ 10 on applications;
(ii) ₹ 45, including premium of ₹ 15 on allotment ; and
(iii) Balance as first and final call.
The issue was subscribed and allotment made. Calls were made and due amount was received .
Pass Journal entries .
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:
(a) at par
(b) at a discount of 10% and
(c) at a premium of 10%.
It was agreed that any fraction of debentures be paid in cash.
Pass necessary Journal entries relating to the issue of debentures for the following:
(a) Issued ₹ 28,000; 10% Debentures of ₹ 100 each at a premium of 15% redeemable at par.
(b) Issued ₹ 30,000; 10% Debentures of ₹ 100 each at a premium of 10% and redeemable at a premium of 15%.
(c) Issued ₹ 80,000; 10% Debentures of ₹ 100 each at par repayable at a premium of 10%.
Pass necessary Journal entries for the issue of debentures in the following cases:
(a) ₹ 40,000; 12% Debentures of ₹ 100 each issued at a premium of 5% redeemable at par.
(b) ₹ 70,000; 12% Debentures of ₹ 100 each issued at a premium of 5% redeemable at ₹ 110.
On 1st April, 2015. Mathew Ltd. issued 10,000, 9% Debentures of ₹ 100 each at a discount of 5%, redeemable at a premium of 5%. These debentures were redeemable as follows:
| On 31st March, 2016 | 2,000 Debentures; |
| On 31st March, 2017 | 5,000 Debentures; |
| On 31st March, 2018 | 3,000 Debentures. |
Prepare the Loss on Issue of Debentures Account, Debentures Account and Premium on Redemption of Debentures Account for three years.
Premium on redemption is shown under which head until debentures are redeemed?
The debentures are issued with a specified rate of interest, which is called the coupon rate are known as which types of debentures?
Debentures are considered as ______ equity.
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.
Pick the odd one out.
Debenture holders are the ______.
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.
MK Ltd. has outstanding Rs. 30,000 11% debentures of Rs. 100 each redeemable at 10% premium as follows:
| March 31, 2018 - | 10,000 debentures |
| March 31, 2019 - | 12,000 debentures |
| March 31, 2020 - | Remaining debentures |
Pass necessary journal entries in the books of the company.
