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प्रश्न
Pass the necessary Journal entries of the issues and redemption of Debentures in the following cases:
(i) 10,000, 10% Debentures of Rs 120 each issued at 5% premium, repayable at par.
(ii) 20,000, 9% Debentures of Rs 200 each issued at 20% premium, repayable at 30% premium.
उत्तर
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
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|
(i) |
At the time of Issue of Debentures |
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|
|
|
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Bank A/c (10,000 debentures × Rs 126) |
Dr. |
|
12,60,000 |
|
|
|
To 10% Debentures Application A/c |
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|
12,60,000 |
|
|
|
(Application money received) |
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10% Debentures Application A/c (10,000 debentures × Rs 126) |
Dr. |
|
12,60,000 |
|
|
|
To 10% Debentures A/c (10,000 debentures × Rs 6) |
|
|
12,00,000 |
|
|
|
To Securities Premium A/c (10,000 debentures × Rs 120) |
|
|
60,000 |
|
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|
(Issue of 10% Debentures at 5% premium and repayable at par) |
|
|
|
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At the time of Redemption |
|
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|
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10% Debentures A/c |
Dr. |
|
12,00,000 |
|
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|
To Debenturesholders’ A/c |
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|
12,00,000 |
|
|
|
(Amount due to debenturesholders) |
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|
|
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Debenturesholders’ A/c |
Dr. |
|
12,00,000 |
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To Bank A/c |
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|
12,00,000 |
|
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|
(Amount paid to debenturesholders) |
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(ii) |
At the time of Issue of Debentures |
|
|
|
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Bank A/c (20,000 debentures × Rs 240) |
Dr. |
|
48,00,000 |
|
|
|
To 9% Debentures Application A/c |
|
|
48,00,000 |
|
|
|
(Application money received) |
|
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|
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9% Debentures Application A/c (20,000 debentures × Rs 240) |
Dr. |
|
48,00,000 |
|
|
|
Loss on Issue of Debentures A/c (20,000 debentures × Rs 60) |
Dr. |
|
12,00,000 |
|
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To 9% Debentures A/c (20,000 debentures × Rs 200) |
|
|
40,00,000 |
|
|
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To Securities Premium A/c (20,000 debentures × Rs 40) |
|
|
8,00,000 |
|
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|
To Premium on Redemption on Debentures A/c (20,000 debentures × Rs 60) |
|
|
12,00,000 |
|
|
|
(Issue of 9% Debentures at 20% premium repayable at 30% premium) |
|
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|
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|
|
|
|
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At the time of Redemption |
|
|
|
|
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|
9% Debentures A/c |
Dr. |
|
40,00,000 |
|
|
|
Premium on Redemption of Debentures A/c |
Dr. |
|
12,00,000 |
|
|
|
To Debentureholders A/c |
|
|
52,00,000 |
|
|
|
(Amount due to debenturesholders) |
|
|
|
|
|
|
|
|
|
|
|
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|
Debentureholders A/c |
Dr. |
|
52,00,000 |
|
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|
To Bank A/c |
|
|
52,00,000 |
|
|
|
(Amount paid to debentures holders on redemption) |
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APPEARS IN
संबंधित प्रश्न
On 1.4.2015, KVK Ltd. issued 15,000, 9% debentures of Rs 100 each at a discount of 7%, redeemable t a premium of 10% after 10 years. The company closes its books on 31st March every year. Interest on 9%debentures is payable on 30th September and 31st March every year. The rate of tax deducted at source is 10%.
Pass necessary journal entries for the issue of 9% debentures and debenture interest for the year ended 31.3.2016.
Pass necessary journal entries in the given cases :
Britannia Ltd. redeemed 3,000, 12% debentures of Rs 100 each which were issued at a discount of Rs 10 per debenture by converting them into equity shares of Rs 100 each Rs 90 paid up.
The issue of debenture more than the face value is termed as an issue of debenture at par.
Joy Ltd. invited applications for issuing 20,000 equity shares of Rs 10 each at par. The amount was payable as follows:
On Allotment − Rs 4 per share
On First and find call − Balance amount
The issue was oversubscribed by three times. Applications for 20% shares were rejected and the money was refunded. Allotment was made to the remaining applicants as ffollows:
| Category | No. of Shares Applied | No. of Shares Allotted |
| I | 30,000 | 15,000 |
| II | 18,000 | 5,000 |
Excess money received with applications was adjusted towards sums due on allotment. Money in excess to sums due on allotment was adjusted towards sums due on first and final call and any money in excess to sums due on first and final call was refunded. Kavi, a shareholder who had applied for 600 shares, failed to pay the remaining allotment money and his shares were immediately forfeited. Kavi belonged to Category I.
Afterwards the first and final call was made. Gupta, who had applied for 400 shares, failed to pay the first and final call. Gupta also belonged to Category I.
Shares of Gupta were also forfeited after the first and final call. The forfeited shares were reissued at Rs 12 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of Joy Ltd.
Pass necessary Journal entries for the following transaction in the books of Fortune Ltd:
(i) Redeemed Rs 96,000, 12% Debenture by conversion into Equity Shares of Rs 100 each. The
Equity Shares were issued at a discount 4%.
(ii) Converted 4,800, 12% Debentures of Rs 100 each into New 13% Debentures of Rs 100 each.
The new Debentures were issued at a premium 25%.
Answer in a sentence only.
What is meant by ‘Issue of debenture at discount and redeemable at premium’?
Answer in a sentence only.
What is meant by ‘Premium on Redemption of debentures?
Select most appropriate alternative from those given below :
The issue of debenture at its face value is called the issue ___________.
Select most appropriate alternative from those given below :
The issue of debentures more than face value is called___________.
State to whether the following statement is True/False.
The issue of debentures less than face value of debenture to termed as issue of debentures at discount.
State to whether the following statement is True/False.
The issue of debenture more than face value is termed on issue of debentures at par.
Tanagi Ltd. issued Rs 10,000 12% debentures of Rs 100 each at a discount of 5% Payable as follows:
On Application Rs 40
On Allotment Rs 55
Show journal entries assuming that all the installments were duly collected. Also show the relevant portion of the balance sheet.
Savitri Ltd. issued 50,000, 8% Debentures of ₹ 100 each at a certain rate of premium and to be redeemed at 10% premium. At the time of writing off Loss on Issue of Debentures, Statement of Profit and Loss was debited with ₹ 2,00,000. At what rate of premium, these debentures were issued?
Pass necessary journal entries for the issue of debentures in the following cases :
- Issued ₹ 7,00,000, 9% debentures of ₹ 100 each at a premium of 20% redeemable at a premium of 10% after 6 years.
- Issued 10,000, 12% debentures of ₹ 100 each at 10% discount redeemable at a premium of 5% after 5 years.
- Issued 75,000, 12% debentures of ₹ 100 each at par, redeemable at premium of 10% after three years.
Pass necessary journal entries for the issue of debentures in the following cases:
- Issued 5,000, 9% debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 5% after 5 years.
- Issued 30,000, 12% debentures of ₹ 100 each at a premium of 5% and redeemable at par after 5 years.
- Issued 8,750, 12% debentures of ₹100 each at par, redeemable at par after 5 years.
Alexa Ltd. purchased building from Siri Ltd for ₹ 8,00,000. The consideration was paid by issue of 6% debentures of ₹ 100 each at a discount of 20%. The 6% Debentures account is credited with ______.
During the year 2021-22 SM Ltd. issued 10,000, 10% Debentures of ₹ 100 each at a discount of 10% to be redeemed after three years. The company had a balance of ₹ 60,000 in its Securities Premium Reserve.
What amount will be added under Operating Activities as Discount on Issue of Debentures written off in the Cash Flow Statement of SM Ltd. for the year 2021-22?
On 1st April, 2023, Ruth Ltd. purchased Plant and Machinery for ₹ 11,00,000 from Pablo Ltd. payable as to ₹ 1,00,000 by accepting a promissory note and the balance by an issue of 11% Debentures of ₹ 100 each at a premium of 10% to be redeemed at a premium of 2 % after six years. You are required to pass journal entries in the books of Ruth Ltd. only to record the payment made to Pablo Ltd.
The following balances have been extracted from the books of Nirvana Ltd, as at 31st March, 2024:
| Particulars | (₹) | Particulars | (₹) |
| Security deposit for electricity for ten years | 30,000 | Uncalled amount on partly paid-up shares | 8,00,000 |
| Underwriting commission | 20,000 | 10% Debentures | 5,00,000 |
| General Reserve | 70,000 | Statement of P/L (Dr.) | 10,000 |
| Fixed Deposits | 2,00,000 | Calls-in arrears @ ₹ 1 per share | 40,000 |
| Premium on redemption of Debentures | 20,000 | Securities Premium | 2,00,000 |
| Equity Share Capital (1,00,000 shares of ₹ 10 each) |
10,00,000 |
You are required to show the above items in Notes to Accounts accompanying the Balance Sheet of Nirvana Ltd. prepared as per Schedule III of the Companies Act 2013 as at 31st March, 2024.
