Question 11: 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:
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Books of Kati Ltd. |
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Journal |
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Date |
Particular |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
|
Bank
A/c |
Dr. |
|
8,10,000 |
|
|
|
To 9% Debenture
Application and Allotment A/c |
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|
8,10,000 |
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|
|
(Debenture
application money received for 9,000 debentures at ₹ 90 each face value
₹100 at 10% discount) |
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9%
Debenture Application A/c Discount
on issue of Debenture A/c |
Dr. Dr. |
|
8,10,000 80,000 |
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To 9% Debentures A/c |
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|
8,00,000 |
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To Bank A/c |
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90,000 |
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(Debenture
application money transferred to 9% Debenture account for 8,000 Debenture,
and money refunded for 1,000 debentures) |
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Question 12:
LinuxLtd. 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) |
|
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|
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|
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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) |
|
|
|
|
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|
|
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|
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|
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) |
|
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|
|
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|
|
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|
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|
Bank
A/c |
Dr. |
|
2,40,000 |
|
|
|
To 8% Debenture
Allotment A/c |
|
|
2,40,000 |
|
|
|
(Allotment
money received) |
|
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|
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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) |
|
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|
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) |
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Question 13:
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) |
|
|
|
|
|
|
|
|
|
|
|
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|
Debenture Application A/c |
Dr. |
|
25,00,000 |
|
|
|
To 10% Debentures A/c |
|
|
|
25,00,000 |
|
|
(Transfer of application money to
Debentures A/c) |
|
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Debenture Allotment A/c (5,000×400) |
Dr. |
|
20,00,000 |
|
|
|
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%) |
|
|
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|
|
|
|
|
|
|
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|
Bank A/c |
Dr. |
|
20,00,000 |
|
|
|
To Debenture Allotment A/c |
|
|
|
20,00,000 |
|
|
(Allotment money received) |
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Quesiton 14:
The Decor Ltd. issued 20,000, 69%
Debentures of 100 each at 10% discount payable ₹30 on application, ₹40
(after discount) and balance as first and final call. Debentures were
subscribed and allotment was made. Amount due on allotment was made and
received. First and final call is yet to be made.
You are required to pass the necessary Journal entries.
Answer:
|
Books of Decor Ltd. |
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|
Journal |
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|||||
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
|
|
Bank
A/c |
Dr. |
|
6,00,000 |
|
|
|
|
To 6% Debenture
Application A/c |
|
|
6,00,000 |
|
|
|
|
(Debenture
application money received for 20,000 debentures at ₹ 30 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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6%
Debenture Application A/c |
Dr. |
|
6,00,000 |
|
|
|
|
To 6% Debenture A/c |
|
|
6,00,000 |
|
|
|
|
(Debenture
application money transferred to 9% Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6%
Debenture Allotment A/c |
Dr. |
|
8,00,000 |
|
|
|
|
Discount
on Issue of Debenture A/c Dr. |
2,00,000 |
|
|||
|
To 6% Debentures A/c |
|
|
10,00,000 |
|
||
|
|
(Debenture
allotment money due on 20,000 Debentures at ₹ 40 each after ₹ 10
Discount) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Bank
A/c |
Dr. |
|
8,00,000 |
|
|
|
|
To 6% Debenture
Allotment A/c |
|
|
8,00,000 |
|
|
|
|
(Debenture
allotment money received) |
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Question
15:
On 1st October, 2022, Ninza
Ltd. issued 4,000, 8% Debentures of ₹100 each at a discount of 10%. The
Company had a balance of ₹50,000 in Securities Premium Account on the
same date.
Pass
necessary Journal entries for issue of debentures and to write off discount on
issue of debentures. (CBSE 2024)
Answer:
|
In the book of
Ninza Ltd. Journal |
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|
Date |
Particulars |
|
L.F. |
(Dr.) ₹ |
(Cr.) ₹ |
|
|
Bank A/c |
Dr. |
|
3,60,000 |
|
|
|
To Debentures Application and Allotment A/c |
|
|
|
3,60,000 |
|
|
(Being application money received on issue of
debentures) |
|
|
|
|
|
|
Debentures Application and Allotment A/c |
Dr. |
|
3,60,000 |
|
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
40,000 |
|
|
|
To 8%
Debenture A/c |
|
|
|
4,00,000 |
|
|
( Being debentures allotted and application money
transfer to debenture account) |
|
|
|
|
|
|
Securities Premium Reserve A/c |
Dr. |
|
40,000 |
|
|
|
To Discount
on Issue of Debenture A/c |
|
|
|
40,000 |
|
|
( Being discount on issue of debenture written off) |
|
|
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Ts Grewal Solution 2025-2026
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Class 12 / Volume – 2