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प्रश्न
Deepak Ltd purchased furniture of ₹ 2,20,000 from M/s. Furniture Mart. 50% of the amount was paid to M/s. Furniture Mart by accepting a Bill of Exchanged and for the balance the company issued 9% Debenture of ₹ 100 each at a premium of 10% in favour of M/s. Furniture Mart.
Pass Journal entries in the books of Deepak Ltd.
उत्तर
Books of Deepak Ltd.
Journal
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
Furniture A/c |
Dr. |
|
2,20,000 |
|
|
|
To Furniture Mart |
|
|
2,20,000 |
|
|
|
(Furniture purchased from Furniture Mart) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture Mart |
Dr. |
|
1,10,000 |
|
|
|
To Bills Payable A/c |
|
|
1,10,000 |
|
|
|
(Bill accepted from Furniture Mart against 50% payment) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture Mart |
Dr. |
|
1,10,000 |
|
|
|
To 9% Debenture A/c |
|
|
1,00,000 |
|
|
|
To Securities Premium A/c |
|
|
10,000 |
|
|
|
(Issued 1,000 9% Debentures of Rs 100 each at a premium of 10% to Furniture Mart) |
|
|
|
|
Working Note:
No.of. debentures to be issued =
`"Purchase Consideration"/"Issue Price"`
`= 110000/(100 + 10) = 110000/110`
= 1000 debentures
APPEARS IN
संबंधित प्रश्न
Long Answer Question
Describe the meaning of ‘Debenture Issued as Collateral Securities’. What accounting treatment is given to the issue of debentures in the books of accounts?
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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.
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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.
Footfall Ltd. issues 10,000 Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 5% after the expiry of three years.
Pass Journal entries for the issue of these debentures.
On 1st January, 2017, Raha Ltd. issued 6,000, 8% Debentures of nominal (face) value of ₹ 100 each redeemable at 5% premium in equal proportions at the end of 5, 10 and 15 years. It has a balance of ₹ 10,000 in Securities Premium Reserve.
Pass Journal entries. Also give Journal entries for writing off Loss on Issue of Debentures.
Fill in the blank.
For recording the issue of debentures as collateral security by a journal entry _______ account is debited.
Which of the following. column indicated in·the statement given below is to be credited?
"Writing off the loss on issue of debentures"
Loss on Issue of Debenture Account is shown:
Assertion (A): Issue of debenture does not result in dilution of interest of equity shareholders.
Reason (R): Debenture holders have voting rights.
Debenture premium cannot be used to ______.
Which of the following statement is true?
10% Debenture issued at ₹ 105 is repayable at ₹ 110, the face value of the debenture being ₹ 100. Calculate the amount of loss on redemption of debentures.
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.
