Question 11:
Linux
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 ` |
Credit ` |
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
Question 12:
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. (Delhi
2015 C)
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Bank A/c (5,000×500) |
Dr. |
|
25,00,000 |
|
|
|
To Debenture
Application A/c |
|
|
|
25,00,000 |
|
|
(Received application
money on 5,000 debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application
A/c |
Dr. |
|
25,00,000 |
|
|
|
To 10% Debentures
A/c |
|
|
|
25,00,000 |
|
|
(Transfer of application
money to Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Allotment A/c
(5,000×400) |
Dr. |
|
20,00,000 |
|
|
|
Discount on issue of Debentures A/c (5,000×100) |
|
|
5,00,000 |
|
|
|
Loss on issue of
Debentures A/c (5,000×50) |
Dr. |
|
2,50,000 |
|
|
|
To 10% Debentures
A/c (5,000×500) |
|
|
|
25,00,000 |
|
|
To Premium on
Redemption of Debentures A/c (5,000×50) |
|
|
|
2,50,000 |
|
|
(Allotment due on 5,000
Debentures at a discount of ` 100 per debentures and
redeemable at premium of 5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
20,00,000 |
|
|
|
To Debenture
Allotment A/c |
|
|
|
20,00,000 |
|
|
(Allotment money
received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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 |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Building A/c |
Dr. |
|
9,00,000 |
|
|
|
To Vendor
A/c |
|
|
9,00,000 |
|
|
|
(Building purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
9,00,000 |
|
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
|
To 10%
Debentures A/c |
|
|
10,00,000 |
|
|
|
(Issued 10,000, 10% debentures at 10% discount) |
|
|
|
|
|
|
|
|
|
|
|
Working Note:
Number of debentute to be issued= Purchase consideration/issue
price=9,00,000/90=10,000 Debentures
Question 14:
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 (`) |
Credit (`) |
|
|
|
|
|
|
|
|
|
|
Incorporation Cost A/c
(2,000 × 100) |
Dr. |
|
2,00,000 |
|
|
|
To 6% Debentures
A/c |
|
|
|
2,00,000 |
|
|
( Debentures issued to
promoters) |
|
|
|
|
|
|
|
|
|
|
|
Question 15: B Ltd. issued 9% Debentures of `
100 each at a premium of 20% to Vendors for purchase of plant costing `
6,00,000.
Pass the necessary Journal entry for the
payment made to vendors. (CBSE 2020)
Answer:
|
Books of B Ltd. |
|||||
|
Journal |
|||||
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
|
Plant A/c |
Dr. |
|
6,00,000 |
|
|
|
To Vendor’s
A/c |
|
|
6,00,000 |
|
|
|
(Being purchase of plant) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vendor’s A/c Dr. |
|
6,00,000 |
|
|
|
|
To 9%
Debentures A/c |
|
|
5,00,000 |
|
|
|
To
Securities Premium Reserve A/c |
|
|
1,00,000 |
|
|
|
(Being 9% Debentures issued of ` 100 each at a premium of 20% to Vendors
for purchase of plant costing ` 6,00,000 at `120) |
|
|
|
|
|
|
|
|
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Ts Grewal Solution 2022-2023
Class 12 / Volume – 2
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