Page No 9.55:
Question 31:
Pass
journal entries in the following cases:
(a) Rohit Ltd. issued `40,000; 12% Debentures at a premium of 5% redeemable
at par.
(b) Virat Ltd. issued `40,000; 12% Debentures at a discount of 10% redeemable
at par.
(c) Rahul Ltd. issued `40,000; 12% Debentures at par redeemable at 10%
premium.
(d) Prithvi Ltd. issued `40,000; 12% Debentures at a discount of 5% and redeemable at 5% premium.
(e) Shikhar Ltd. issued `40,000; 12% Debentures at a premium of 10% redeemable
at 110%.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(a) |
Bank
A/c |
Dr. |
|
42,000 |
|
|
To 12% Debenture
Application A/c |
|
|
42,000 |
|
|
(Debenture
application money received) |
|
|
|
|
|
|
|
|
|
|
|
12%
Debenture Application A/c |
Dr. |
|
42,000 |
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
To Securities Premium
A/c |
|
|
2,000 |
|
|
(Debenture
application money transferred to 12% Debentures account and securities
premium account) |
|
|
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(b) |
Bank
A/c |
Dr. |
|
36,000 |
|
|
To 12% Debenture
Application A/c |
|
|
36,000 |
|
|
(Debenture
application money received) |
|
|
|
|
|
|
|
|
|
|
|
12%
Debenture Application A/c |
Dr. |
|
36,000 |
|
|
Discount
on Issue of Debentures A/c |
Dr. |
|
4,000 |
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
(Debentures
of Rs 40,000 issued at 10% discount) |
|
|
|
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(c) |
Bank
A/c |
Dr. |
|
40,000 |
|
|
To 12% Debenture
Application A/c |
|
|
40,000 |
|
|
(Debenture
application money received) |
|
|
|
|
|
|
|
|
|
|
|
12%
Debenture Application A/c |
Dr. |
|
40,000 |
|
|
Loss
on Issue of Debentures A/c |
Dr. |
|
4,000 |
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
To Premium on
Redemption A/c |
|
|
4,000 |
|
|
(Debentures
of Rs 40,000 issued at par with the term repayable at 10% premium) |
|
|
|
|
|
|
|
|
|
Journal |
|
||||||||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
||||||
(d) |
Bank
A/c |
Dr. |
|
38,000 |
|
|
|||||
|
To 12% Debenture
Application A/c |
|
|
38,000 |
|
||||||
|
(Debenture
application money received) |
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
Debenture
Application A/c |
Dr. |
|
38,000 |
|
|
|||||
|
Discount
on Issue of Debenture A/c |
Dr. |
|
2,000 |
|
|
|||||
|
Loss
on Issue of Debenture A/c |
Dr. |
|
2,000 |
|
|
|||||
|
To 12% Debentures A/c |
|
|
40,000 |
|
||||||
|
To Premium on
Redemption A/c |
|
|
2,000 |
|
||||||
|
(Debentures
of Rs 40,000 issued at 5% discount with the term repayable at 5% premium) |
|
|
|
|
||||||
|
|
|
|
|
|
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|
|||||||||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|||||||
(e) |
Bank
A/c |
Dr. |
|
44,000 |
|
||||||
|
To 12% Debenture
Application A/c |
|
|
44,000 |
|||||||
|
(Debenture
application money received) |
|
|
|
|||||||
|
|
|
|
|
|||||||
|
12%
Debenture Application A/c |
Dr. |
|
44,000 |
|
||||||
|
Loss
on Issue of Debentures A/c |
Dr. |
|
4,000 |
|
||||||
|
To 12% Debentures A/c |
|
|
40,000 |
|||||||
|
To Securities Premium
A/c |
|
|
4,000 |
|||||||
|
To Premium on Redemption A/c |
|
|
4,000 |
|||||||
|
(Debenture
of Rs 40,000 issued at 10% premium with the term payable at 10% premium) |
|
|
|
|||||||
|
|
|
|
|
|||||||
Page No 9.55:
Question 32:
Answer:
In the books of ZK Ltd. Journal |
||||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
(e) |
Bank
A/c |
Dr. |
|
3,80,000 |
|
|
|
To 9% Debenture
Application A/c |
|
|
3,80,000 |
||
|
(Debenture
application money received at 5% discount) |
|
|
|
||
|
|
|
|
|
||
|
9%
Debenture Application A/c |
Dr. |
|
3,80,000 |
|
|
|
Discount
on Issue of Debentures A/c |
Dr. |
|
20,000 |
|
|
Loss
on Issue of Debentures A/c |
Dr. |
40,000 |
||||
|
To 9% Debentures A/c |
|
|
4,00,000 |
||
|
To Premium on Redemption A/c |
|
|
40,000 |
||
|
(Debenture
of Rs 4,00,000 issued at 5% Discount with the term payable at 10% premium) |
|
|
|
||
|
|
|
|
|
||
Page No 9.55:
Question 33:
Answer:
In the books of X Ltd. Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
Bank
A/c |
Dr. |
|
94,000 |
|
To 9% Debenture
Application A/c |
|
|
94,000 |
|
(Debenture
application money received at 6% discount) |
|
|
|
|
|
|
|
|
|
9%
Debenture Application A/c |
Dr. |
|
94,000 |
|
Discount
on Issue of Debentures A/c |
Dr. |
|
6,000 |
|
Loss
on Issue of Debentures A/c |
Dr. |
10,000 |
||
To 9% Debentures A/c |
|
|
1,00,000 |
|
To Premium on Redemption A/c |
|
|
10,000 |
|
(Debenture
of Rs 1,00,000 issued at 6% Discount with the term payable at 10% premium) |
|
|
|
|
|
|
|
|
1
Dr. |
Discount on Issue of Debentures A/c |
Cr. |
|||||
Date |
Particulars |
Amount (`) |
Date |
Particulars |
Amount (`) |
||
On
the date of Issue |
To
9% Debentures A/c |
6,000 |
By
the end of Year of allotment |
By
Statement of Profit & Loss A/c |
6,000 |
||
|
|
|
|
|
|
||
|
|
6,000 |
|
|
6,000 |
||
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Page No 9.55:
Question 34:
Pass
necessary Journal entries relating to the issue of
debentures for the following:
(a)
Issued `
28,000; 10% Debentures of ` 100 each at
a premium of 15% redeemable at par.
(b) Issued `
30,000; 10% Debentures of ` 100 each at
a premium of 10% and redeemable at a premium of 15%.
(c) Issued `
80,000; 10% Debentures of ` 100 each at
par repayable at a premium of 10%.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(a) |
Bank A/c (280 debentures × 115) |
Dr. |
|
32,200 |
|
|
To
Debenture Application and Allotment A/c |
|
|
|
32,200 |
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture
Application and Allotment A/c |
Dr. |
|
32,200 |
|
|
To
10% Debentures A/c |
|
|
|
28,000 |
|
To
Securities Premium Reserve A/c |
|
|
|
4,200 |
|
(280; 10% Debentures issued at a premium of 15%) |
|
|
|
|
|
|
|
|
|
|
(b) |
Bank A/c |
Dr. |
|
33,000 |
|
|
To
Debenture Application and Allotment A/c |
|
|
|
33,000 |
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture
Application and Allotment A/c |
Dr. |
|
33,000 |
|
|
Loss
On Issue of debentures A/c |
Dr. |
|
4,500 |
|
|
To
10% Debentures A/c |
|
|
|
30,000 |
|
To
Securities Premium Reserve A/c |
|
|
|
3,000 |
|
To
Premium on Redemption of debentures A/c |
|
|
|
4,500 |
|
(300; 10% Debentures issued at a premium of 10% and
redeemable at a premium of 15%) |
|
|
|
|
|
|
|
|
|
|
(c) |
Bank A/c |
Dr. |
|
80,000 |
|
|
To
Debenture Application and Allotment A/c |
|
|
|
80,000 |
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture
Application and Allotment A/c |
Dr. |
|
80,000 |
|
|
Loss
On Issue of debentures A/c |
Dr. |
|
8,000 |
|
|
To
10% Debentures A/c |
|
|
|
80,000 |
|
To
Premium on Redemption of debentures A/c |
|
|
|
8,000 |
|
(800; 10% Debentures issued at par and redeemable at
premium of 10%) |
|
|
|
|
|
|
|
|
|
Page No
9.56:
Question 35:
Pass
necessary Journal entries for the issue of debentures in the following cases:
(a) ` 40,000; 12% Debentures of ` 100 each issued at a premium of 5% redeemable at par.
(b) ` 70,000; 12% Debentures of ` 100 each issued at a premium
of 5% redeemable at ` 110.
Answer:
(a)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
42,000 |
|
|
To Debenture Application A/c |
|
|
|
42,000 |
|
(400 debentures issued
at Rs 100 at a premium of 5%) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application
A/c |
Dr. |
|
42,000 |
|
|
To 12% Debenture A/c |
|
|
|
40,000 |
|
To Securities Premium A/c |
|
|
|
2,000 |
|
(400 debentures issued
at a premium of 5% and redeemable at par) |
|
|
|
|
|
|
|
|
|
|
(b)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
73,500 |
|
|
To Debenture Application A/c |
|
|
|
73,500 |
|
(700 debentures issued
at Rs 100 at a premium of 5%) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application
A/c |
Dr. |
|
73,500 |
|
|
Loss on Issue of
Debentures A/c |
Dr. |
|
7,000 |
|
|
To 12% Debenture A/c |
|
|
|
70,000 |
|
To Securities Premium A/c |
|
|
|
3,500 |
|
To Premium on Redemption A/c |
|
|
|
7,000 |
|
(70,000 debentures
issued at a premium of 5% and redeemable at Rs 110) |
|
|
|
|
|
|
|
|
|
|