Question 31:
Best
Barcode Ltd. took a loan of ₹
5,00,000 from a bank giving ₹ 6,00,000; 9% Debentures as
collateral security. Pass journal entries regarding issue of debentures
, if any, and show this loan in the Balance Sheet of the company.
Answer:
|
Best Barcode Ltd. |
||
|
Balance Sheet |
||
|
Particulars |
Note No. |
(₹) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
2. Non-Current
Liabilities |
|
|
|
a. Long-Term Borrowings |
1 |
5,00,000 |
|
3. Current Liabilities |
|
|
|
Total |
|
5,00,000 |
|
|
|
|
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash Equivalents |
2 |
5,00,000 |
|
Total |
|
5,00,000 |
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
(₹) |
|
|
|
|
|
1 |
Long-Term Borrowings |
|
|
|
Loan
(Secured by issue of 9% Debentures of ₹ 6,00,000 as Collateral
Security) |
5,00,000 |
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
5,00,000 |
|
|
|
|
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
|
Bank
A/c |
Dr. |
|
5,00,000 |
|
|
|
To Loan A/c |
|
|
5,00,000 |
|
|
|
(Loan
taken against issuing 9% Debentures as collateral Security) |
|
|
|
|
|
|
|
|
|
|
|
Alternative Method:
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
|
Bank
A/c |
Dr. |
|
5,00,000 |
|
|
|
To Loan A/c |
|
|
5,00,000 |
|
|
|
(Loan
taken against issuing 9% debentures as collateral Security) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
Suspense A/c |
Dr. |
|
6,00,000 |
|
|
|
To 9% Debentures A/c |
|
|
6,00,000 |
|
|
|
(Issued
9% Debentures of ₹ 6,00,000 as collateral security) |
|
|
|
|
|
|
|
|
|
|
|
Posting
in the Company's Balance Sheet
|
Best Barcode Ltd. |
||
|
Balance Sheet |
||
|
Particulars |
Note No. |
(₹) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
2. Non-Current Liabilities |
|
|
|
a. Long-Term Borrowings |
1 |
5,00,000 |
|
3. Current Liabilities |
|
|
|
Total |
|
5,00,000 |
|
|
|
|
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash
Equivalents |
2 |
5,00,000 |
|
Total |
|
5,00,000 |
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
(₹) |
|
|
|
|
|
|
|
1 |
Long-Term Borrowings |
|
|
|
|
Secured: |
|
|
|
|
Loan (Secured by issue
of 9% Debentures of ₹ 6,00,000 as
Collateral Security) |
5,00,000 |
|
|
|
9% Debentures (Issued
as Collateral Security to Bank against loan) |
6,00,000 |
|
|
|
Less: Debenture Suspense Account |
6,00,000 |
- |
|
|
|
5,00,000 |
|
|
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
|
Cash at Bank |
5,00,000 |
|
|
|
|
|
|
Question 32:
Bhagwati Ltd took a loan of ₹
3,00,000 from IDBI Bank . The company issued 4,000; 9% Debentures of ₹ 100 each as a collateral security for
the same . Show how these items will be presented in the Balance Sheet of the
company. (AI 2010)
Answer:
When Debentures Issued as Collateral
Security is shown separately
|
X Ltd. |
||
|
Balance Sheet |
||
|
Particulars |
Note No. |
(₹) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
2. Non-Current
Liabilities |
|
|
|
a. Long-Term Borrowings |
1 |
3,00,000 |
|
3. Current Liabilities |
|
|
|
Total |
|
3,00,000 |
|
|
|
|
|
II. Assets |
|
|
|
1.Non-Current Assets |
|
|
|
2.Current Assets |
|
|
|
a. Cash and Cash
Equivalents |
2 |
3,00,000 |
|
Total |
|
3,00,000 |
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
(₹) |
|
|
|
|
|
|
|
1 |
Long-Term Borrowings |
|
|
|
|
Secured: |
|
|
|
|
Loan From
IDBI(Secured by issue of Debentures of ₹ 4,00,000) |
3,00,000 |
|
|
|
9 % Debentures (Issued
as Collateral Security against loan) |
4,00,000 |
|
|
|
Less: Debenture Suspense Account |
4,00,000 |
- |
|
|
|
3,00,000 |
|
|
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
|
Cash at Bank |
3,00,000 |
|
|
|
|
|
|
Alternative
Method: When
Debentures Issued as Collateral Security are not shown separately
|
X Ltd. |
||
|
Balance Sheet |
||
|
Particulars |
Note No. |
(₹) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
2. Non-Current
Liabilities |
|
|
|
a. Long-Term Borrowings |
1 |
3,00,000 |
|
3.Current Liabilities |
|
|
|
Total |
|
3,00,000 |
|
|
|
|
|
II. Assets |
|
|
|
1. Non-Current Assets |
|
|
|
2. Current Assets |
|
|
|
a. Cash and Cash
Equivalents |
2 |
3,00,000 |
|
Total |
|
3,00,000 |
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
(₹) |
|
|
|
|
|
1 |
Long-Term Borrowings |
|
|
|
Secured: |
|
|
|
Loan From IDBI (Secured
by issue of 9% Debentures of ₹ 4,00,000 as Collateral Security) |
3,00,000 |
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
3,00,000 |
|
|
|
|
Question 33:
S.
Singh Limited obtained a loan of ₹ 5,00, 000
from State Bank of India @ 10% p.a. interest. The company issued ₹ 7,50,000, 10% Debentures of ₹ 100 each in favour of State Bank of India as Collateral Security. Pass
necessary Journal entries for the above transactions:
(i) When company decided not to record the issue of
10% Debentures as Collateral Security.
(ii) When company decided to record the issue of 10% Debentures as Collateral
Security. (Sample Paper 2018-19)
Answer:
(i) When company decided not to record the issue of 10%
debentures as Collateral Security
|
In the books of S. Singh Ltd. Journal |
|||||
|
Date |
Particulars |
|
L.F. |
Debit |
Credit |
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
|
To Bank Loan A/c |
|
|
|
5,00,000 |
|
|
(Being bank loan taken from State
Bank of India @10% p.a. interest) |
|
|
|
|
(ii)
When company decided to record the issue of 10% debentures as Collateral
Security
|
In the books of S. Singh Ltd. Journal |
|||||
|
Date |
Particulars |
|
L.F. |
Debit (₹) |
Credit (₹) |
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
|
To Bank Loan A/c |
|
|
|
5,00,000 |
|
|
(Being bank loan taken from State
Bank of India @10% p.a. interest) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debentures Suspense A/c |
Dr. |
|
7,50,000 |
|
|
|
To 10% Debentures A/c |
|
|
|
7,50,000 |
|
|
(Being 7,500, 10% Debentures
issued as collateral security) |
|
|
|
|
Question 34:
On 1st April, 2021, Bingo Ltd. issued ₹20,00,000, 9% Debentures of ₹100 each at a premium of
10%, redeemable at a premium of 5%.
Pass the necessary Journal entries for issue of
debentures in the books of Bingo Ltd. (CBSE 2023)
Answer:
|
Date |
Particular |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
Bank A/c |
Dr. |
|
22,00,000 |
|
|
|
|
To
Debenture Application and Allotment A/c |
|
|
|
22,00,000 |
|
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
Application and Allotment A/c |
Dr. |
|
22,00,000 |
|
|
|
Loss
On Issue of debentures A/c |
Dr. |
|
1,00,000 |
|
|
|
To
9% Debentures A/c |
|
|
|
20,00,000 |
|
|
To
Securities Premium Reserve A/c |
|
|
|
2,00,000 |
|
|
To
Premium on Redemption of debentures A/c |
|
|
|
1,00,000 |
|
|
(20,000; 9% Debentures issued at a premium of 9% and
redeemable at a premium of 5%) |
|
|
|
|
|
|
|
|
|
|
|
Question 35:
ZK Ltd issued ₹ 4,00,000, 99% Debentures
of ₹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) |
|
|
|
||
Ts Grewal Solution 2025-2026
Click below for more Questions
Class 12 / Volume – 2