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Question
Pass necessary journal entries in the following cases
Jain Ltd. converted 2,000, 12% debentures of Rs 100 each issued at an into equity share of Rs 100 each issued at a premium of 25%.
Solution
| Jain Ltd. Journal |
||||
| Date | Particulars | L.F |
Dr. Rs |
Cr. Rs |
|
12% Debenture A/c Dr. To Debenture holder A/c (Being 2,000 12% debenture of Rs 100 each due for |
2,00,000
|
2,00,000
|
||
|
Debenture A/c Dr. To Equity share capital A/c Dr. To Securities Premium A/c (Being 1,600 equity share of Rs 100 each issued at the premium of 25% to debenture holders) |
2,00,000
|
1,60,000 40,000
|
||
Number of shares to be issued = `"Amount Payable"/"Issue Price" = "2,00,000"/((100 - 25)) = 250000/125` = 1,600 share
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Answer in one Sentence only :
What do you understand by Pro-rata allotment of shares?
How will you calculate the no. of shares issued for consideration other than cash?
Which of the following is not a purpose for which the Securities Premium amount can be used ?
If equity share of ₹ 10 each is issued at ₹ 12 each, it is called:
Assertion (A): A Company is Registered with an authorised Capital of 5,00,000 Equity Shares of ₹ 10 each of which 2,00,000 Equity shares were issued and subscribed. All the money had been called up except ₹ 2 per share which was declared as ‘Reserve Capital’. The Share Capital reflected in balance sheet as ‘Subscribed and Fully paid up’ will be Zero.
Reason (R): Reserve Capital can be called up only at the time of winding up of the company.
Rancho Ltd. took over assets worth ₹ 20,00,000 from PK Ltd. by paying 30% through bank draft and balance by issue of shares of ₹ 100 each at a premium of 10%. The entry to be passed by Rancho Ltd for settlement will be:
