Page No 9.52:
Question 11:
Alka Ltd . issued 5,000, 10% Debentures
of ` 1,000 each at a discount of 10% redeemable at a
premium of 5% after 5 years . According to the terms of issue ` 500 was payable
on application and the balance amount on allotment of debentures. Record necessary entries regarding issue of 10% Debentures.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount (`) |
Credit Amount (`) |
|
|
|
Bank A/c (5,000×500) |
Dr. |
|
25,00,000 |
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To Debenture Application A/c |
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25,00,000 |
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(Received application money on
5,000 debentures) |
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Debenture Application A/c |
Dr. |
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25,00,000 |
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To 10% Debentures A/c |
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25,00,000 |
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(Transfer of application money to
Debentures A/c) |
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Debenture Allotment A/c (5,000×400) |
Dr. |
|
20,00,000 |
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Discount
on issue of Debentures A/c (5,000×100) |
|
|
5,00,000 |
|
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Loss on issue of Debentures A/c
(5,000×50) |
Dr. |
|
2,50,000 |
|
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|
To 10% Debentures A/c
(5,000×500) |
|
|
|
25,00,000 |
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To Premium on Redemption of
Debentures A/c (5,000×50) |
|
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2,50,000 |
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(Allotment due on 5,000 Debentures
at a discount of ` 100 per debentures and redeemable at premium of 5%) |
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Bank A/c |
Dr. |
|
20,00,000 |
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To Debenture Allotment A/c |
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20,00,000 |
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(Allotment money received) |
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Page No 9.52:
Question 12:
Amrit Ltd . was promoted by Amrit and Bhaskar with an authorised capital of `
10,00,000 divide into 1,00,000 shares of `
10 each.
The company decided to issue 1,000,6% Debentures
of ` 100 each to Amrit and
Bhaskar each for their services in
incorporating the company.
Pass journal entry.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount (`) |
Credit Amount (`) |
|
|
|
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|
|
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|
Incorporation Cost A/c (2,000 ×
100) |
Dr. |
|
2,00,000 |
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To 6% Debentures A/c |
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2,00,000 |
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( Debentures issued to promoters) |
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Page No 9.53:
Question 13:
Joy
Ltd. company bought a Building for ` 9,00,000 and the
consideration was paid by issuing 10% Debentures of the normal (face) value
of ` 100 each at a discount of 10%.
Give
Journal entries.
Answer:
|
Books of Joy Limited |
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|
Date |
Particulars |
L.F. |
Debit Amount (`) |
Credit Amount (`) |
|
|
|
Building
A/c |
Dr. |
|
9,00,000 |
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To Vendor A/c |
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|
9,00,000 |
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(Building
purchased) |
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Vendor
A/c |
Dr. |
|
9,00,000 |
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Discount
on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
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To 10% Debentures A/c |
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|
10,00,000 |
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(Issued
10,000, 10% debentures at 10% discount) |
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Working Note:
Number of debentute to be issued= Purchase
consideration/issue price=9,00,000/90=10,000 Debentures
Page No 9.53:
Question 14:
Ananya Ltd . purchased an established business for ` 2,00,000 payable as ` 65,000 by cheque and
the balance by issuing 9% Debentures of `
100 each at a discount of 10%.
Give journal entries in the books of Ananya Ltd.
Answer:
|
Books of Ananya Ltd. |
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Journal |
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Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
Sundry
Assets A/c |
Dr. |
|
2,00,000 |
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To Vendor A/c |
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|
2,00,000 |
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(Business
purchased) |
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Vendor
A/c |
Dr. |
|
65,000 |
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To Bank A/c |
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|
65,000 |
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(Amount
paid to Vendor in cash) |
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Vendor
A/c |
Dr. |
|
1,35,000 |
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Discount
on Issue of Debentures A/c |
Dr. |
|
15,000 |
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To 9% Debentures A/c |
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|
1,50,000 |
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(Issued
1,500 debentures at 10% discount) |
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Working Note:
Number of debentute to be issued= Purchase
consideration/issue price=1,35,000/90=1,500 Debentures
Page No 9.53:
Question 15:
Newton
Ltd. purchased a Machinery from B for ` 5,76,000 to be paid
by the issue of 9% Debentures of ` 100
each at 4% discount. Journalise the trasactions.
Answer:
|
Books of Newton Ltd. |
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|
Journal |
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Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
Machinery
A/c |
Dr. |
|
5,76,000 |
|
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To B |
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|
5,76,000 |
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(Machinery
purchased from B) |
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B |
Dr. |
|
5,76,000 |
|
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Discount
on Issue of Debenture A/c |
Dr. |
|
24,000 |
|
|
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To 9% Debenture A/c |
|
|
6,00,000 |
|
|
|
(Issued
6,000 debentures at 4% discount) |
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Working Note:
Number of debentute to be issued= Purchase
consideration/issue price
=5,76,000/100-4=5,76,000/96=6,000 Debentures