commercemine.com

12th | Company Accounts- Issue of Debentures| Question No.  31 To 35 | Ts Grewal Solution 2022-2023

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)

 

 

 

 

 

 

 

 

 

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)

 

 

 

 

 

 

 

 

Click below for more Questions

Ts Grewal Solution 2022-2023

Class 12 / Volume – 2

Click on below links for 

12th TS Grewal’s Accountancy Solutions

Ts Grewal Solution 2022-2023

Ts Grewal Solution 2021-2022

Ts Grewal Solution 2020-2021