Question 31:
Journalise the following:
(a) A debenture issued at `95, repayable at ` 100.
(b) A debenture issued at `95, repayable at ` 105.
(c) A debenture issued at `95, repayable at ` 105.
The face value of debenture is ` 100 in each of
the above cases.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
(a) |
Bank A/c |
Dr. |
|
95 |
|
|
|
To Debenture
Application A/c |
|
|
95 |
|
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
95 |
|
|
|
Discount on Issue of Debentures A/c |
|
|
5 |
|
|
|
To Debenture
A/c |
|
|
100 |
|
|
|
(Debenture of ` 100 each issued at ` 95 with the term repayable at par) |
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
Bank A/c |
Dr. |
|
95 |
|
|
|
To Debenture
Application A/c |
|
|
95 |
|
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
95 |
|
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
5 |
|
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
5 |
|
|
|
To
Debentures A/c |
|
|
100 |
|
|
|
To Premium
on Redemption A/c |
|
|
5 |
|
|
|
(Debenture of ` 100 each issued of ` 95 with the term repayable at ` 105) |
|
|
|
|
|
|
|
|
|
|
|
|
(c) |
Bank A/c |
Dr. |
|
100 |
|
|
|
To Debenture
Application A/c |
|
|
100 |
|
|
|
(Debenture Application received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
100 |
|
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
5 |
|
|
|
To
Debentures A/c |
|
|
100 |
|
|
|
To Premium
on Redemption A/c |
|
|
5 |
|
|
|
(Debenture of ` 100 each issued at par with the term
repayable at `
105) |
|
|
|
|
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|
Question 32:
ZK Ltd issued T 4,00,000, 99% Debentures of R
100 each at a discount of 5% redeemable at a premium of 10%
Pass necessary Journal entries for the above transactions in the Books of
ZK Ltd. (CBSE 2019)
Answer:
|
In the books of ZK Ltd. Journal |
||||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
||
|
(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 ` 4,00,000 issued at 5% Discount with the
term payable at 10% premium) |
|
|
|
||
|
|
|
|
|
|
||
Question 33: On 1st April, 2018, Sakshi
Ltd. issued 1,000, 11% Debentures of ` 100
each at a discount of 6%, redeemable at a premium of 5% after three years.
Pass the necessary Journal entries for the
issue of debentures in the books of Sakshi Ltd. (CBSE
2020)
Answer:
|
Books of Sakshi Ltd. |
|||||
|
Journal |
|||||
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
|
Bank A/c |
Dr. |
|
94,000 |
|
|
|
To Debenture
Application A/c |
|
|
94,000 |
|
|
|
(Being Application Money Received for 1,000 at `94) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c Dr. |
|
94,000 |
|
|
|
|
Discount on issue of Debenture A/c Dr. |
|
6,000 |
|
|
|
|
Loss on Redemption on Debenture A/c Dr. |
|
5,000 |
|
|
|
|
To 11%
Debentures A/c |
|
|
1,00,000 |
|
|
|
To Premium on
redemption of debenture A/c |
|
|
5,000 |
|
|
|
(Being
1,60,000, 11% Debentures issued of ` 100 each at a premium of at `6) |
|
|
|
|
|
|
|
|
|
||
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 ` |
Credit ` |
|
|
(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%) |
|
|
|
|
|
|
|
|
|
|
|
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. (Delhi2013)
Answer:
(a)
|
Journal |
|||||
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
|
Bank A/c |
Dr. |
|
40,00,000 |
|
|
|
To Debenture
Application A/c |
|
|
40,00,000 |
|
|
|
(Being Application Money Received for 40,000 at `10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c Dr. |
|
40,00,000 |
|
|
|
|
Loss on Redemption on Debenture A/c Dr. |
|
2,00,000 |
|
|
|
|
To 12%
Debentures A/c |
|
|
40,00,000 |
|
|
|
To Premium on
redemption of debenture A/c |
|
|
2,00,000 |
|
|
|
(Being 40,000,
12% Debentures issued of `100 each at a premium of at `5) |
|
|
|
|
|
|
|
|
|
||
(b)
|
Journal |
|||||
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
|
Bank A/c |
Dr. |
|
73,50,000 |
|
|
|
To Debenture
Application A/c |
|
|
73,50,000 |
|
|
|
(Being Application Money Received for 70,000 at `105) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c Dr. |
|
73,50,000 |
|
|
|
|
Loss on Redemption on Debenture A/c Dr. |
|
7,00,000 |
|
|
|
|
To 12%
Debentures A/c |
|
|
70,00,000 |
|
|
|
To Securities
premium reserve A/c |
|
|
3,50,000 |
|
|
|
To Premium on
redemption of debenture A/c |
|
|
7,00,000 |
|
|
|
(Being 70,000,
12% Debentures issued of `100 each at a premium of at `5, redeemable at `110) |
|
|
|
|
|
|
|
|
|
||
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Ts Grewal Solution 2022-2023
Class 12 / Volume – 2
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