Question 41: Agam Ltd. issued
40,000; 9% Debentures of ` 100 each on 1st April, 2023 at a
discount of 10% redeemable at a premium of 10%.Assuming that the interest was
paid half yearly on 30th September and 31st March, give Journal entries
relating to debenture interest for the half year ended 31st March, 2024.
Answer:
|
Books of Agam Ltd. |
|
|||||
|
Journal |
|
|||||
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
|
1-9-2023 |
Debenture
Interest A/c |
Dr. |
|
1,80,000 |
|
|
|
|
To Debenture Holders’ A/c |
|
|
1,80,000 |
|
|
|
|
(Being
interest allowed on debenture) |
|
|
|
|
|
|
1-9-2023 |
Debenture Holders’ A/c Dr. |
|
1,80,000 |
|
|
|
|
|
To Bank A/c |
|
|
1,80,000 |
|
|
|
|
(Being interest paid) |
|
|
|
|
|
|
31-3-2024 |
Debenture Interest A/c Dr. |
|
1,80,000 |
|
|
|
|
To Debenture Holders’ A/c |
|
|
1,80,000 |
|
||
|
|
(Being
interest allowed on debenture) |
|
|
|
|
|
|
31-3-2024 |
Debenture Holders’ A/c Dr. |
|
1,80,000 |
|
|
|
|
To Bank A/c |
|
|
1,80,000 |
|
||
|
|
(Being interest paid) |
|
|
|
|
|
|
31-3-2024 |
Statement of P&L A/c Dr. |
|
3,60,000 |
|
|
|
|
|
To Debenture
Interest A/c |
|
|
3,60,000 |
|
|
|
|
(Being Debenture Interest transferred to Statement
P&L) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Question 42:
Pratham Ltd. issued 50,000, 9% Debentures of `100 each on 1st April, 2023 at10% discount,
redeemable at `10
premium. Interest is payable quarterly on 30th June, 30th September, 31st
December and 31 st March.
Pass the Journal
entries for interest for the period ended 30th June, 2023.
Answer:
|
Books of Pratham Ltd. |
|
|||||
|
Journal |
|
|||||
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
|
30-6-2023 |
Debenture
Interest A/c |
Dr. |
|
1,25,000 |
|
|
|
|
To Debenture Holders’ A/c |
|
|
1,25,000 |
|
|
|
|
(Being
interest allowed on debenture) |
|
|
|
|
|
|
30-6-2023 |
Debenture Holders’ A/c Dr. |
|
1,25,000 |
|
|
|
|
|
To Bank A/c |
|
|
1,25,000 |
|
|
|
|
(Being interest paid) |
|
|
|
|
|
|
30-9-2023 |
Debenture Interest A/c Dr. |
|
1,25,000 |
|
|
|
|
To Debenture Holders’ A/c |
|
|
1,25,000 |
|
||
|
|
(Being
interest allowed on debenture) |
|
|
|
|
|
|
30-9-2023 |
Debenture Holders’ A/c Dr. |
|
1,25,000 |
|
|
|
|
To Bank A/c |
|
|
1,25,000 |
|
||
|
|
(Being interest paid) |
|
|
|
|
|
|
31-12-2023 |
Debenture Interest A/c Dr. |
|
1,25,000 |
|
|
|
|
|
To Debenture
Holders’ A/c |
|
|
1,25,000 |
|
|
|
|
(Being interest allowed on debenture) |
|
|
|
|
|
|
31-12-2023 |
Debenture Holders’ A/c Dr. |
|
1,25,000 |
|
|
|
|
|
To Bank A/c |
|
|
1,25,000 |
|
|
|
|
(Being interest paid) |
|
|
|
|
|
|
31-3-2024 |
Debenture Interest A/c Dr. |
|
1,25,000 |
|
|
|
|
|
To Debenture
Holders’ A/c |
|
|
1,25,000 |
|
|
|
|
(Being interest allowed on debenture) |
|
|
|
|
|
|
31-3-2024 |
Debenture Holders’ A/c Dr. |
|
1,25,000 |
|
|
|
|
|
To Bank A/c |
|
|
1,25,000 |
|
|
|
|
(Being interest paid) |
|
|
|
|
|
|
31-3-2024 |
Statement of P&L A/c Dr. |
|
4,50,000 |
|
|
|
|
|
To Debenture
Interest A/c |
|
|
4,50,000 |
|
|
|
|
(Being Debenture Interest transferred to Statement
P&L) |
|
|
|
|
|
Question 43:
Bright
Ltd. issued 5,000; 10% Debentures of `
100 each on 1st April, 2021 . The issue was fully
subscribed. According to the terms of issue, interest on the debentures is
payable half-yearly on 30th September and 31st March and the tax deducted
at source is 10%.
Pass necessary journal entries related to the debenture interest for the year
ending 31st March, 2022 and transfer of interest on debentures of the year to
the Statement of Profit and Loss.
Answer:
|
Journal In the books of Bright Ltd. |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
2022 |
|
|
|
|
|
|
Mar. 31 |
Debentures
Interest A/c |
Dr. |
|
25,000 |
|
|
|
To Debenture Holder’s A/c |
|
|
|
22,500 |
|
|
To Income Tax Payable A/c |
|
|
|
2,500 |
|
|
(Debentures
interest due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
Holder’s A/c |
Dr. |
|
22,500 |
|
|
|
Income
Tax Payable A/c |
|
|
2,500 |
|
|
|
To
Bank A/c |
|
|
|
25,000 |
|
|
(Interest
on debentures paid) |
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31 |
Statement
of Profit & Loss A/c |
Dr. |
|
50,000 |
|
|
|
To Debentures Interest A/c |
|
|
|
50,000 |
|
|
(Interest
transferred to profit and loss) |
|
|
|
|
|
|
|
|
|
|
|
Question 44:
On
1st April, 2020,V.V.L.Ltd issued 1,000, 9%
Debentures of ` 100 each at a discount of 6%, redeemable at a
premium of 10% after three years. Pass necessary journal entries for the issue
of debentures and debenture interest for the year ended 31st March, 2021,
assuming that interest is payable on 30th September and 31st March and the rate
of tax deducted at source is 10%. The company closes its books on 31st March
every year.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
2020 |
|
|
|
|
|
|
Apr. 01 |
Bank
A/c |
Dr. |
|
94,000 |
|
|
|
To Debenture Application and Allotment A/c |
|
|
|
94,000 |
|
|
(Money
received on the issue of debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
Application and Allotment A/c |
Dr. |
|
94,000 |
|
|
|
Loss
on Issue of Debentures A/c |
Dr. |
|
16,000 |
|
|
|
To 9% Debentures A/c |
|
|
|
1,00,000 |
|
|
To Premium on Redemption of Debentures A/c |
|
|
|
10,000 |
|
|
(Debenture
application and allotment money transferred to Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30 |
Debenture
Interest A/c |
Dr. |
|
4,500 |
|
|
|
To Debenture holders’ A/c |
|
|
|
4,050 |
|
|
To TDS Payable A/c |
|
|
|
450 |
|
|
(Interest
due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
holders’ A/c |
Dr. |
|
4,050 |
|
|
|
To Bank A/c |
|
|
|
4,050 |
|
|
(Payment
of interest) |
|
|
|
|
|
|
|
|
|
|
|
|
|
TDS
Payable A/c |
Dr. |
|
450 |
|
|
|
To Bank A/c |
|
|
|
450 |
|
|
(Payment
of tax) |
|
|
|
|
|
2021 |
|
|
|
|
|
|
Mar 31 |
Debenture
Interest A/c |
Dr. |
|
4,500 |
|
|
|
To Debenture holders’ A/c |
|
|
|
4,050 |
|
|
To TDS Payable A/c |
|
|
|
450 |
|
|
(Interest
due) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
holders’ A/c |
Dr. |
|
4,050 |
|
|
|
To Bank A/c |
|
|
|
4,050 |
|
|
(Payment
of interest) |
|
|
|
|
|
|
|
|
|
|
|
|
|
TDS
Payable A/c |
Dr. |
|
450 |
|
|
|
To Bank A/c |
|
|
|
450 |
|
|
(Payment
of tax) |
|
|
|
|
Question 45:
Pawan Hans Ltd. issued on 1st July, 2023, 10,000, 7%
Debentures of `100
each for subscription at 10% premium payable `40 on application and balance on allotment. The
debentures were subscribed and due amounts were received. Interest was payable
on 31st March each year.
Pass the Journal entry
for issue of debentures and interest for the year ended 31st March, 2024 and
transfer the interest to Statement of Profit & Loss.
Answer:
|
Books of Pawan Hans Ltd. |
|
|||||
|
Journal |
|
|||||
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
|
Bank
A/c |
Dr. |
|
4,00,000 |
|
|
|
|
|
To Debenture application A/c |
|
|
4,00,000 |
|
|
|
|
(10,000) |
|
|
|
|
|
|
Debenture application A/c Dr. |
|
4,00,000 |
|
|
||
|
|
To 7%
Debenture A/c |
|
|
4,00,000 |
|
|
|
|
|
|
|
|
|
|
|
|
() |
|
|
|
|
|
|
|
9%
Debenture Allotment A/c |
Dr. |
7,00,000 |
|
|
|
|
To 7% Debentures A/c |
|
|
6,00,000 |
|
||
|
To Securities
Premium Reserve A/c |
|
|
1,00,000 |
|
||
|
(Debenture
allotment money due on 10,000 Debentures at ` 70 each including ` 10 Premium) |
|
|
|
|
||
|
Bank
A/c |
Dr. |
7,00,000 |
|
|
||
|
To 7% Debenture
Allotment A/c |
|
|
7,00,000 |
|
||
|
|
(Debenture
allotment money received) |
|
|
|
|
|
|
31-3-2024 |
Debenture Interest A/c Dr. |
|
52,500 |
|
|
|
|
|
To Debenture
Holders’ A/c |
|
|
52,500 |
|
|
|
|
(Being interest allowed on debenture for 9 months) |
|
|
|
|
|
|
31-3-2024 |
Debenture Holders’ A/c Dr. |
|
52,500 |
|
|
|
|
|
To Bank A/c |
|
|
52,500 |
|
|
|
|
(Being interest paid) |
|
|
|
|
|
|
31-3-2024 |
Statement of P&L A/c Dr. |
|
52,500 |
|
|
|
|
|
To Debenture
Interest A/c |
|
|
52,500 |
|
|
|
|
(Being Debenture Interest transferred to Statement
P&L) |
|
|
|
|
|
Working note:
Value of debenture =
10,000×100=10,00,000
7% Interest on
Debenture for nine months = (10,00,000×7×9)÷(100×12)=52,500
Ts Grewal Solution 2024-2025
Click below for more Questions
Class 12 / Volume – 2