12th | Ts grewal 2021-2022 Question 6 to 10 | Issue of Debenture

Page No 10.64:

Question 6:

Alok Ltd. issued 7,000, 10% Debentures of ` 500 each at a premium of ` 50 per debenture redeemable at a premium of 10% after 5 years. According to the terms of issue, `200 was payable on application and balance on allotment.
Record necessary Journal entries at the time of issue of 10% Debentures.

Answer:

Journal
Date	Particulars		L.F.	Debit  (`)	Credit  (`)
	Bank A/c (7,000×200)	Dr.		14,00,000
	To Debenture Application A/c				14,00,000
	(Received application money on 7,000 debentures)
	Debenture Application A/c	Dr.		14,00,000
	To 10% Debentures A/c				14,00,000
	(Transfer of application money to Debentures A/c)
	Debenture Allotment A/c (7,000×350)	Dr.		24,50,000
	Loss on issue of Debentures A/c (7,000×50)	Dr.		3,50,000
	To 10% Debentures A/c (7,000×300)				21,00,000
	To Securities Premium Reserve A/c (7,000×50)				3,50,000
	To Premium on Redemption of Debentures A/c(7,000×50)				3,50,000
	(Allotment due on 7,000 Debentures at a premium of ` 50 per debentures and redeemable at premium of 10%)
	Bank A/c	Dr.		24,50,000
	To Debenture Allotment A/c				24,50,000
	(Allotment money received)

 

Page No 10.64:

Question 7:

Vijay Laxmi Ltd. invited applications for 10,000; 12% Debentures of ` 100 each at a premium of ` 70 per debenture .The full amount was payable on application.
Applications were received for 13,500 debentures. Applications for 3,500 debentures were rejected  and application money was refunded . Debentures were allotted to the remaining applications.

Answer:

In the Books of Vijay Laxmi Ltd. Journal
Date	Particulars		L.F.	Debit `	Credit `
	Bank A/c	Dr.		22,95,000
	To Debenture Application and Allotment A/c				22,95,000
	(Application money received on 13,500 12% debenture)
	Debenture Application and Allotment A/c	Dr.		22,95,000
	To 12% Debentures A/c				10,00,000
	To Securities Premium Reserve A/c				7,00,000
	To Bank A/c				5,95,000
	(10,000; 12% Debentures issued at a premium of ` 70 and excess money refunded)

 

Page No 10.64:

Question 8:

Narain Laxmi Ltd. invited applications for issuing 7,500; 12% Debentures of ` 100 each at a premium of ` 35 per debenture. The full amount was payable on application. Applications were received for 10,000 Debentures. Allotment was made to all the applications on pro rata.
Pass necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd.

Answer:

 

In the Books of Narain Laxmi Ltd. Journal
Date	Particulars		L.F.	Debit `	Credit `
	Bank A/c (10,000 debentures × 135)	Dr.		13,50,000
	To Debenture Application and Allotment A/c				13,50,000
	(Application money received on 10,000 12% debenture)
	Debenture Application and Allotment A/c	Dr.		13,50,000
	To 12% Debentures A/c				7,50,000
	To Securities Premium Reserve A/c				2,62,500
	To Bank A/c				3,37,500
	(7,500; 12% Debentures of ` 100 each issued at a premium of ` 35 and excess money refunded)

 

Page No 10.64:

Question 9:

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 .

Answer:

Journal
Date	Particulars		L.F.	Debit  (`)	Credit  (`)
	Bank A/c (5,000×40)	Dr.		2,00,000
	To Debenture Application A/c				2,00,000
	(Application money received)
	Debenture Application A/c	Dr.		2,00,000
	To 9% Debentures A/c (5,000×30)				1,50,000
	To Security Premium Reserve A/c (5,000×10)				50,000
	(Application money adjusted)
	Debenture Allotment A/c (5,000×45)	Dr.		2,25,000
	To 9% Debentures A/c  (5,000×30)				1,50,000
	To Security Premium Reserve A/c (5,000×15)				75,000
	(Allotment money due)
	Bank A/c (5,000×45)	Dr.		2,25,000
	To Debenture Allotment A/c				2,25,000
	(Allotment money received)
	Debenture First and Final call A/c (5,000×55)	Dr.		2,75,000
	To 9% Debentures A/c (5,000×40)				2,00,000
	To Security Premium Reserve A/c (5,000×15)				75,000
	(First call money due)
	Bank A/c	Dr.		2,75,000
	To Debenture Final and Final call A/c				2,75,000
	(First Call money Received)

 

Page No 10.64:

Question 10:  Kati Ltd. issued 8,000, 99% Debentures of ` 100 each at a discount of 10%. The full amount was payable on application. Applications were received for 9,000 debentures and allotment was made on pro rata basis.

Pass the necessary Journal entries for the above transactions in the books of Kati Ltd. (CBSE 2020)

Answer:

Books of Kati Ltd.
Journal
Date	Particular		L.F.	Debit `	Credit `
	Bank A/c	Dr.		8,10,000
	To 9% Debenture Application and Allotment A/c				8,10,000
	(Debenture application money received for 9,000 debentures at ` 90 each face value `100 at 10% discount)
	9% Debenture Application A/c Discount on issue of Debenture A/c	Dr. Dr.		8,10,000 80,000
	To 9% Debentures A/c				8,00,000
	To Bank A/c				90,000
	(Debenture application money transferred to 9% Debenture account for 8,000 Debenture, and money refunded for 1,000 debentures)

 

Click on Below link for more questions Of Volume-2 of 12th

Chapter-2: Issue of Debenture | 2021-2022

From Question No. 01 To 05

From Question No. 06 To 10

From Question No. 11 To 15

From Question No. 16 To 20

From Question No. 21 To 25

From Question No. 26 To 30

From Question No. 31 To 35

From Question No. 36 To 40

From Question No. 41 To 45

From Question No. 46 To 49

Jump to chapter list of solution-2021-22

Jump to chapter list of solution-2020-21
Jump to chapter list of solution-2019-20