Question 6:
Alok Ltd. issued 7,000, 10%
Debentures of ` 500 each at a premium of ` 50 per
debenture redeemable at a premium of 10% after 5 years. According to the terms
of issue, `200 was payable on application and balance on
allotment.
Record necessary Journal entries at the time of issue of 10% Debentures.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Bank A/c (7,000×200) |
Dr. |
|
14,00,000 |
|
|
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To Debenture
Application A/c |
|
|
|
14,00,000 |
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|
(Received application
money on 7,000 debentures) |
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|
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Debenture Application
A/c |
Dr. |
|
14,00,000 |
|
|
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To 10% Debentures
A/c |
|
|
|
14,00,000 |
|
|
(Transfer of application
money to Debentures A/c) |
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Debenture Allotment A/c
(7,000×350) |
Dr. |
|
24,50,000 |
|
|
|
Loss on issue of
Debentures A/c (7,000×50) |
Dr. |
|
3,50,000 |
|
|
|
To 10% Debentures
A/c (7,000×300) |
|
|
|
21,00,000 |
|
|
To Securities
Premium Reserve A/c (7,000×50) |
|
|
|
3,50,000 |
|
|
To Premium on Redemption
of Debentures A/c(7,000×50) |
|
|
|
3,50,000 |
|
|
(Allotment due on 7,000
Debentures at a premium of ` 50 per debentures and
redeemable at premium of 10%) |
|
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Bank A/c |
Dr. |
|
24,50,000 |
|
|
|
To Debenture
Allotment A/c |
|
|
|
24,50,000 |
|
|
(Allotment money
received) |
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Question 7:
Vijay Laxmi Ltd. invited applications for
10,000; 12% Debentures of ` 100 each at a premium of ` 70 per debenture .The full amount was
payable on application.
Applications were received for 13,500 debentures. Applications for 3,500
debentures were rejected and application money
was refunded . Debentures were allotted to the remaining applications.
Answer:
|
In
the Books of Vijay Laxmi Ltd. Journal |
|
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
||
|
|
Bank A/c |
Dr. |
|
22,95,000 |
|
|
|
|
To Debenture Application and Allotment
A/c |
|
|
|
22,95,000 |
|
|
|
(Application money received on 13,500 12%
debenture) |
|
|
|
||
|
|
|
|
|
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||
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|
Debenture Application and Allotment A/c |
Dr. |
|
22,95,000 |
|
|
|
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To 12% Debentures A/c |
|
|
|
10,00,000 |
|
|
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To Securities Premium Reserve A/c |
|
|
|
7,00,000 |
|
|
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To Bank A/c |
|
|
|
5,95,000 |
|
|
|
(10,000; 12% Debentures issued at a
premium of ` 70 and excess money refunded) |
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Question 8:
Narain Laxmi Ltd. invited
applications for issuing 7,500; 12% Debentures of ` 100 each at a premium of ` 35 per debenture. The full amount was
payable on application. Applications were received for 10,000 Debentures.
Allotment was made to all the applications on pro rata.
Pass necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd.
Answer:
|
In
the Books of Narain Laxmi
Ltd. Journal |
|
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit
` |
||
|
|
Bank A/c (10,000 debentures × 135) |
Dr. |
|
13,50,000 |
|
|
|
|
To Debenture Application and Allotment A/c |
|
|
|
13,50,000 |
|
|
|
(Application money received on 10,000 12%
debenture) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Debenture Application and Allotment A/c |
Dr. |
|
13,50,000 |
|
|
|
|
To 12% Debentures A/c |
|
|
|
7,50,000 |
|
|
|
To Securities Premium Reserve A/c |
|
|
|
2,62,500 |
|
|
|
To Bank A/c |
|
|
|
3,37,500 |
|
|
|
(7,500; 12% Debentures of ` 100 each issued at a premium of ` 35 and excess money refunded) |
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Question 9:
Iron Products Ltd. issued 5,000; 9% Debentures of ` 100 each at a premium of ` 40 payable as follows;
(i) ` 40 , including premium of ` 10 on applications;
(ii) ` 45, including premium of ` 15 on allotment ; and
(iii) Balance as first and final call.
The issue was subscribed and allotment made. Calls were made and due amount was received .
Pass Journal entries.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Bank A/c (5,000×40) |
Dr. |
|
2,00,000 |
|
|
|
To Debenture Application
A/c |
|
|
|
2,00,000 |
|
|
(Application money
received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application
A/c |
Dr. |
|
2,00,000 |
|
|
|
To 9% Debentures
A/c (5,000×30) |
|
|
|
1,50,000 |
|
|
To Security
Premium Reserve A/c (5,000×10) |
|
|
|
50,000 |
|
|
(Application money
adjusted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Allotment A/c
(5,000×45) |
Dr. |
|
2,25,000 |
|
|
|
To 9% Debentures
A/c (5,000×30) |
|
|
|
1,50,000 |
|
|
To Security
Premium Reserve A/c (5,000×15) |
|
|
|
75,000 |
|
|
(Allotment money due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (5,000×45) |
Dr. |
|
2,25,000 |
|
|
|
To
Debenture Allotment A/c |
|
|
|
2,25,000 |
|
|
(Allotment money
received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture First
and Final call A/c (5,000×55) |
Dr. |
|
2,75,000 |
|
|
|
To 9% Debentures
A/c (5,000×40) |
|
|
|
2,00,000 |
|
|
To Security
Premium Reserve A/c (5,000×15) |
|
|
|
75,000 |
|
|
(First call money due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,75,000 |
|
|
|
To Debenture
Final and Final call A/c |
|
|
|
2,75,000 |
|
|
(First Call money
Received) |
|
|
|
|
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Question 10: Kati Ltd. issued 8,000, 99%
Debentures of ` 100 each
at a discount of 10%. The full amount was payable on application. Applications
were received for 9,000 debentures and allotment was made on pro rata basis.
Pass the necessary Journal entries for the
above transactions in the books of Kati Ltd. (CBSE 2020)
Answer:
|
Books of Kati Ltd. |
|||||
|
Journal |
|||||
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
|
Bank A/c |
Dr. |
|
8,10,000 |
|
|
|
To 9%
Debenture Application and Allotment A/c |
|
|
8,10,000 |
|
|
|
(Debenture application money received for 9,000
debentures at `
90 each face value `100 at 10% discount) |
|
|
|
|
|
|
|
|
|
|
|
|
|
9% Debenture Application A/c Discount on issue of Debenture A/c |
Dr. Dr. |
|
8,10,000 80,000 |
|
|
|
To 9%
Debentures A/c |
|
|
8,00,000 |
|
|
|
To Bank A/c |
|
|
90,000 |
|
|
|
(Debenture application money transferred to 9%
Debenture account for 8,000 Debenture, and money refunded for 1,000
debentures) |
|
|
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Ts Grewal Solution 2022-2023
Class 12 / Volume – 2
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12th TS Grewal’s Accountancy Solutions