Page No 9.57:
Question 46:
On
1st April, 2017, Solar Power Ltd. issued 10,000, 8% Debentures of ` 100 each at a discount of 5% redeemable at a premium
of 15% at the end of five years. All the debentures were subscribed and
allotment was made. The company had balance in Securities Premium Reserve of ` 80,000.
Prepare the Balance Sheet (extract) as at 31st March, 2018.
Answer:
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In the books of Solar Power Ltd. An Extract of Balance Sheet As at 31st March, 2018 |
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Particulars |
Note |
Amount |
|
I. EQUITIES AND LIABILITIES |
|
|
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1. Shareholders’ Funds |
|
|
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Reserves and Surplus |
3 |
(1,20,000) |
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2. Non-Current Liabilities |
|
|
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a. Long-term Borrowings |
1 |
10,00,000 |
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b. Other long-term Liabilities |
2 |
1,50,000 |
|
Total |
|
|
|
|
|
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II. Assets |
|
|
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Current Assets |
|
|
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Cash and Cash Equivalents |
4 |
9,50,000 |
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|
|
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Total |
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Notes to Accounts: |
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Note |
Particulars |
Amount |
|
|
1. |
Long-term Borrowings |
|
|
|
|
10,000,
8% Debentures of `100
each issued |
|
10,00,000 |
|
|
|
|
|
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2. |
Other long-term Liabilities |
|
|
|
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Premium
on Redemption of Debentures |
|
1,50,000 |
|
|
|
|
|
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3. |
Reserves and Surplus |
|
|
|
|
Securities
Premium Reserve |
80,000 |
|
|
|
Less: Loss on Issue of Debentures
written off |
(80,000) |
|
|
|
Statement
of Profit and Loss |
– |
|
|
|
Less: Loss on Issue of Debentures
written off |
(1,20,000) |
(1,20,000) |
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|
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4. |
Cash and Cash Equivalents |
|
|
|
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On
8% debentures @ `
95 each (10,000 × 95) |
|
9,50,000 |
Page No 9.57:
Question 47:
On 1st April, 2015. Mathew Ltd. issued 10,000, 9% Debentures of ` 100 each at a discount of 5%, redeemable at a premium
of 5%. These debentures were redeemable as follows:
|
On
31st March, 2016 |
2,000 Debentures; |
|
On
31st March, 2017 |
5,000 Debentures; |
|
On
31st March, 2018 |
3,000 Debentures. |
Prepare the Loss on Issue of Debentures Account, Debentures Account and Premium
on Redemption of Debentures Account for three years.
Answer:
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In the books of Mathew Ltd. |
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Dr. |
Loss on Issue of Debentures A/c |
Cr. |
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|
Date |
Particulars |
Amount (`) |
Date |
Particulars |
Amount (`) |
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|
2015 |
|
|
2016 |
|
|
||
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April 01 |
To
9% Debentures A/c |
1,00,000 |
March 31 |
By
Statement of Profit & Loss A/c |
1,00,000 |
||
|
|
|
|
|
|
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||
|
|
|
1,00,000 |
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|
1,00,000 |
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Dr. |
9% Debentures A/c |
Cr. |
|||||
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Date |
Particulars |
Amount (`) |
Date |
Particulars |
Amount (`) |
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|
2016 |
|
|
2015 |
|
|
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|
March 31 |
To
Debentureholders A/c |
2,00,000 |
April 01 |
By
Debenture Application & Allotment A/c |
9,50,000 |
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|
March 31 |
To
balance c/d |
8,00,000 |
April 01 |
By
Loss on Issue of Debentures A/c |
50,000 |
||
|
|
|
|
|
|
|
||
|
|
|
10,00,000 |
|
|
10,00,000 |
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|
2017 |
|
|
2016 |
|
|
||
|
March 31 |
To
Debentureholders A/c |
5,00,000 |
April 01 |
By
balance b/d |
8,00,000 |
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|
March 31 |
To
balance c/d |
3,00,000 |
|
|
|
||
|
|
|
|
|
|
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||
|
|
|
8,00,000 |
|
|
8,00,000 |
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|
2018 |
|
|
2017 |
|
|
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|
March 31 |
To
Debentureholders A/c |
3,00,000 |
April 01 |
By
balance b/d |
3,00,000 |
||
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|
|
|
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||
|
|
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3,00,000 |
|
|
3,00,000 |
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|
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|
Dr. |
Premium on Redemption of Debentures A/c |
Cr. |
|||||
|
Date |
Particulars |
Amount (`) |
Date |
Particulars |
Amount (`) |
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|
2016 |
|
|
2015 |
|
|
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|
March 31 |
To
Debentureholders A/c
|
10,000 |
April 01 |
By
Loss on Issue of Debentures A/c |
50,000 |
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|
March 31 |
To
balance c/d |
40,000 |
|
|
|
||
|
|
|
|
|
|
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||
|
|
|
50,000 |
|
|
50,000 |
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|
2017 |
|
|
2016 |
|
|
||
|
March 31 |
To
Debentureholders A/c |
25,000 |
April 01 |
By
balance b/d |
40,000 |
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|
March 31 |
To
balance c/d |
15,000 |
|
|
|
||
|
|
|
|
|
|
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||
|
|
|
40,000 |
|
|
40,000 |
||
|
2018 |
|
|
2017 |
|
|
||
|
March 31 |
To
Debentureholders A/c |
15,000 |
April 01 |
By
balance b/d |
15,000 |
||
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|
|
|
|
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|
|
|
15,000 |
|
|
15,000 |
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Page No 9.57:
Question 48:
Office
Products Ltd, issued on 1st April, 2018, 20,000, 9% Debentures of ` 100 each at a premium of 10% redeemable at a premium
of 5% after 5 years. Issue price was payable along with application. Pass the
necessary Journal entries.
Answer:
|
In the books of Office Products Ltd. Journal |
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Date |
Particulars |
|
L.F. |
Debit Amount (`) |
Credit Amount (`) |
|
2018 |
|
|
|
|
|
|
April 01 |
Bank
A/c |
Dr. |
|
22,00,000 |
|
|
|
To Debentures Application and Allotment A/c |
|
|
|
22,00,000 |
|
|
(Being
application money received on 20,000 debentures) |
|
|
|
|
|
|
|
|
|
|
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|
April 01 |
Debentures
Application and Allotment A/c |
Dr. |
|
22,00,000 |
|
|
|
Loss
on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
|
To 9% Debentures A/c |
|
|
|
20,00,000 |
|
|
To Securities Premium Reserve A/c |
|
|
|
2,00,000 |
|
|
To Premium on Redemption of Debentures A/c |
|
|
|
1,00,000 |
|
|
(Being
application and allotment money adjusted and 5% premium on redemption of
debentures too) |
|
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2019 |
|
|
|
|
|
|
March 31 |
Securities
Premium Reserve A/c |
Dr. |
|
1,00,000 |
|
|
|
To Loss on Issue of Debentures A/c |
|
|
|
1,00,000 |
|
|
(Being
loss on issue of debentures written off) |
|
|
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