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:
GT
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) |
|
|
|
|
|
|
|
|
|
|
|
Question 8:
Nikki 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 Nikki 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:
Raja
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quesiton 10:
Kamya 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 KamyaLtd. |
|
|||||
|
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 2025-2026
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Class 12 / Volume – 2