Question 6:
Nipa
Limited issued ` 10,00,000 Debentures
of ` 100 each at a premium of 10% , payable 25% on
application (including premium) and the balance on allotment . The debentures
were applied for and the amount was dully received.
You are required to give Journal entries and prepare Cash Book.
Answer:
Face
Value of Debenture = ` 100
Premium
(` 100 × 10%) = `
10
∴ Issue Price = `
110
Amount Payable as:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
Debenture
Application A/c |
Dr. |
|
2,50,000 |
|
|
|
To
Debentures A/c |
|
|
1,50,000 |
|
|
|
To
Securities Premium A/c |
|
|
1,00,000 |
|
|
|
(Debenture
application money received for 10,000 debentures at ` 25 including premium of `10 each transferred to debenture account) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
Allotment A/c |
Dr. |
|
8,50,000 |
|
|
|
To
Debentures A/c |
|
|
8,50,000 |
|
|
|
(Debentures
allotment due on 10,000 Debentures at ` 85 each) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash Book |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Date |
Particulars |
L.F. |
Bank ` |
Date |
Particulars |
L.F. |
Bank ` |
|
|
Debenture
Application |
|
2,50,000 |
|
|
|
|
|
|
Debenture
Allotment |
|
8,50,000 |
|
|
|
|
|
|
|
|
|
|
Balance
c/d |
|
11,00,000 |
|
|
|
|
11,00,000 |
|
|
|
11,00,000 |
|
|
|
|
|
|
|
|
|
|
On Application (25%) |
` 25 including premium of ` 10 (i.e. ` 10 + 15) |
|
On Allotment (85%) |
` 85 per debenture |
|
|
|
Question 7:
Raj
Ltd. issued 5,000; 8% Debentures of ` 100 each at a premium of 5% payable as follows:
` 10 on application ; ` 20 along with premium on allotment and balance on
first and final call.
Pass necessary Journal entries.
Answer:
|
Books of Raj Ltd. |
|||||
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
Bank
A/c |
Dr. |
|
50,000 |
|
|
|
To 8% Debenture
Application A/c |
|
|
50,000 |
|
|
|
(Debenture
application money received for 5,000 debentures at ` 10 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
8%
Debenture Application A/c |
Dr. |
|
50,000 |
|
|
|
To 8% Debentures A/c |
|
|
50,000 |
|
|
|
(Debenture
application money transferred to 8% Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
8%
Debenture Allotment A/c |
Dr. |
|
1,00,000 |
|
|
|
To 8% Debentures A/c |
|
|
75,000 |
|
|
|
To Securities Premium
A/c |
|
|
25,000 |
|
|
|
(Debenture
allotment due on 5,000 8% Debentures at ` 20 including premium of ` 5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
1,00,000 |
|
|
|
To 8% Debentures
Allotment A/c |
|
|
1,00,000 |
|
|
|
(Debenture
allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
8%
Debentures First and Final Call A/c |
Dr. |
|
3,75,000 |
|
|
|
To 8% Debenture A/c |
|
|
3,75,000 |
|
|
|
(Debenture
first and final call due on 5,000 Debentures at ` 75 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
3,75,000 |
|
|
|
To 8% Debenture First
and Final Call A/c |
|
|
3,75,000 |
|
|
|
(Debenture
first and final call received) |
|
|
|
|
|
|
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|
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|
Quesiton 8:
Grand Hospitality Ltd. issued
10,000, 9% Debentures of `100 each at premium of `20 per debenture. Issue price was
payable as follows: `40 on application, `50 (including premium) on allotment and
balance on first and final call. It received `4,00,000 as application money. On allotment due
amount was received. First and final call is yet to be made.
You are required to pass the necessary Journal entries.
Answer:
|
Books of Grand Hospitality Ltd. |
|
|||||
|
Journal |
|
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
Bank
A/c |
Dr. |
|
4,00,000 |
|
|
|
|
To 6% Debenture Application
A/c |
|
|
4,00,000 |
|
|
|
|
(Debenture
application money received for 10,000 debentures at ` 40 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6%
Debenture Application A/c |
Dr. |
|
4,00,000 |
|
|
|
|
To 6% Debenture A/c |
|
|
4,00,000 |
|
|
|
|
(Debenture
application money transferred to 9% Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6%
Debenture Allotment A/c |
Dr. |
|
5,00,000 |
|
|
|
|
To 6% Debentures A/c |
|
|
3,00,000 |
|
|
|
To Securities Premium
Reserve A/c |
2,00,000 |
|
||||
|
|
(Debenture
allotment money due on 10,000 Debentures at ` 50 each Includes 20 premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
5,00,000 |
|
|
|
|
To 6% Debenture Allotment
A/c |
|
|
5,00,000 |
|
|
|
|
(Debenture
allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Question 10:
Pure Products Ltd. issued 30,000,
8% Debentures of `100 each at 10% premium for
subscription. The issue price was payable `40 on application, `40 (including premium) on
allotment and balance on first and final call. It received application money
amounting to `10,80,000.
Allotment was made and allotment money was received. First and final call is
yet to be made.
You are required to pass the necessary Journal entries.
Answer:
|
Books of Pure Products Ltd. |
|
|||||
|
Journal |
|
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
Bank
A/c |
Dr. |
|
10,80,000 |
|
|
|
|
To 6% Debenture Application
A/c |
|
|
10,80,000 |
|
|
|
|
(Debenture
application money received for 27,000 debentures at ` 40 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6%
Debenture Application A/c |
Dr. |
|
10,80,000 |
|
|
|
|
To 6% Debenture A/c |
|
|
10,80,000 |
|
|
|
|
(Debenture
application money transferred to 9% Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6%
Debenture Allotment A/c |
Dr. |
|
10,80,000 |
|
|
|
|
To 6% Debentures A/c |
|
|
8,10,000 |
|
|
|
To Securities Premium Reserve
A/c |
2,70,000 |
|
||||
|
|
(Debenture
allotment money due on 27,000 Debentures at ` 40 each Includes 10 premium) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
10,80,000 |
|
|
|
|
To 6% Debenture Allotment
A/c |
|
|
10,80,000 |
|
|
|
|
(Debenture
allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ts Grewal Solution 2024-2025
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Class 12 / Volume – 2