Page No 9.52:
Question 6:
Nipa
Limited issued ` 10,00,000 Debentures
of ` 100 each at a premium of 10% , payable 25% on
application (including premium) and the balance on allotment . The debentures
were applied for and the amount was dully received.
You are required to give Journal entries and prepare Cash Book.
Answer:
Face
Value of Debenture = ` 100
Premium
(` 100 × 10%) = ` 10
∴ Issue Price = ` 110
Amount Payable as:
On
Application (25%) |
` 25
including premium of ` 10 (i.e. ` 10 + 15) |
On
Allotment (85%) |
` 85 per
debenture |
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
Debenture
Application A/c |
Dr. |
|
2,50,000 |
|
|
To Debentures A/c |
|
|
1,50,000 |
|
|
To Securities Premium
A/c |
|
|
1,00,000 |
|
|
(Debenture
application money received for 10,000 debentures at ` 25 including premium of `10 each transferred to debenture account) |
|
|
|
|
|
|
|
|
|
|
|
Debenture
Allotment A/c |
Dr. |
|
8,50,000 |
|
|
To Debentures A/c |
|
|
8,50,000 |
|
|
(Debentures
allotment due on 10,000 Debentures at ` 85 each) |
|
|
|
|
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Cash Book |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
L.F. |
Bank ` |
Date |
Particulars |
L.F. |
Bank ` |
|
Debenture
Application |
|
2,50,000 |
|
|
|
|
|
Debenture
Allotment |
|
8,50,000 |
|
|
|
|
|
|
|
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|
Balance
c/d |
|
11,00,000 |
|
|
|
11,00,000 |
|
|
|
11,00,000 |
|
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Page No 9.52:
Question 7:
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 Amount (`) |
Credit Amount (`) |
|
|
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) |
|
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|
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Page No 9.52:
Question 8:
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 Amount ` |
Credit Amount ` |
||
|
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) |
|
|
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||
|
|
|
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||
|
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) |
|
|
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Page No
9.52:
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 Amount (`) |
Credit Amount (`) |
|
|
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) |
|
|
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Page No 9.52:
Question 10:
Anupama
Ltd . issued 12,000; 8%
Debentures of `
100 each at a discount of 5% payable as 25% on application;20% on allotment and
balance after three months.
Pass Journal entries.
Answer:
Face
Value of Debenture = ` 100
Discount
(` 100 × 5%) = ` 5
∴ Issue Price = ` 95
Amount
Payable as:
On
Application (25%) |
` 25 per
debenture |
On
Allotment (20%) |
` 20 (25 –
5) per debenture |
On
First and Final Call (50%) |
` 50 per
debenture |
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
Bank
A/c |
Dr. |
|
3,00,000 |
|
|
To 8% Debenture
Application A/c |
|
|
3,00,000 |
|
|
(Application
money received for 12,000 8% Debentures at ` 25
each) |
|
|
|
|
|
|
|
|
|
|
|
8%
Debenture Application A/c |
Dr. |
|
3,00,000 |
|
|
To 8% Debentures A/c |
|
|
3,00,000 |
|
|
(Debenture
application money transferred to 8% Debentures account) |
|
|
|
|
|
|
|
|
|
|
|
8%
Debentures Allotment A/c |
Dr. |
|
2,40,000 |
|
|
Discount
on Issue of Debentures A/c |
Dr. |
|
60,000 |
|
|
To 8% Debentures A/c |
|
|
3,00,000 |
|
|
(Allotment
money due on 12,000 8% Debentures at ` 20 each
at discount of ` 5) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
2,40,000 |
|
|
To 8% Debenture
Allotment A/c |
|
|
2,40,000 |
|
|
(Allotment
money received) |
|
|
|
|
|
|
|
|
|
|
|
8%
Debenture First and Final Call A/c |
Dr. |
|
6,00,000 |
|
|
To 8% Debentures A/c |
|
|
6,00,000 |
|
|
(First
and final call money due on 12,000 8% Debentures at ` 50 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
6,00,000 |
|
|
To 8% Debentures First
and Final Call A/c |
|
|
6,00,000 |
|
|
(First
and Final call money received) |
|
|
|
|
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