Question 31:
X 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
DebenturesIssued as Collateral Security is shown
separately
|
X Ltd. |
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|
Balance Sheet |
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|
Particulars |
Note No. |
(`) |
|
I. Equity and Liabilities |
|
|
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1. Shareholders’ Funds |
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|
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2. Non-Current
Liabilities |
|
|
|
a. Long-Term Borrowings |
1 |
3,00,000 |
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3. Current Liabilities |
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|
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Total |
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3,00,000 |
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II. Assets |
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1.Non-Current Assets |
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2.Current Assets |
|
|
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a. Cash and Cash
Equivalents |
2 |
3,00,000 |
|
Total |
|
3,00,000 |
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
(`) |
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1 |
Long-Term Borrowings |
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Secured: |
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|
Loan From
IDBI(Secured by issue of Debentures of ` 4,00,000) |
3,00,000 |
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|
9 % Debentures (Issued
as Collateral Security against loan) |
4,00,000 |
|
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Less: Debenture Suspense Account |
4,00,000 |
- |
|
|
|
3,00,000 |
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2 |
Cash and Cash Equivalents |
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Cash at Bank |
3,00,000 |
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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 |
|
|
|
|
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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 |
|
|
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Question 32:
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 |
|
|
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To Bank Loan A/c |
|
|
|
5,00,000 |
|
|
(Being
bank loan taken from State Bank of India @10% p.a. interest) |
|
|
|
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(ii)
When company decided to record the issue of 10% debentures as Collateral
Security
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In the books of S. Singh Ltd. Journal |
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Date |
Particulars |
|
L.F. |
Debit (`) |
Credit (`) |
|
|
Bank
A/c |
Dr. |
|
5,00,000 |
|
|
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To Bank Loan A/c |
|
|
|
5,00,000 |
|
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(Being
bank loan taken from State Bank of India @10% p.a. interest) |
|
|
|
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|
|
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|
|
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|
Debentures
Suspense A/c |
Dr. |
|
7,50,000 |
|
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To 10% Debentures A/c |
|
|
|
7,50,000 |
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(Being
7,500, 10% Debentures issued as collateral security) |
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Question 33:
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 |
|
|
|
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To
Debenture Application and Allotment A/c |
|
|
|
22,00,000 |
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(Application money received) |
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|
|
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Debenture
Application and Allotment A/c |
Dr. |
|
22,00,000 |
|
|
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Loss
On Issue of debentures A/c |
Dr. |
|
1,00,000 |
|
|
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To
9% Debentures A/c |
|
|
|
20,00,000 |
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To
Securities Premium Reserve A/c |
|
|
|
2,00,000 |
|
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To
Premium on Redemption of debentures A/c |
|
|
|
1,00,000 |
|
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(20,000; 9% Debentures issued at a premium of 9% and
redeemable at a premium of 5%) |
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Question 34:
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 |
||
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(Debenture
application money received at 5% discount) |
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|
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||
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||
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9%
Debenture Application A/c |
Dr. |
|
3,80,000 |
|
|
|
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Discount
on Issue of Debentures A/c |
Dr. |
|
20,000 |
|
|
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Loss
on Issue of Debentures A/c |
Dr. |
40,000 |
||||
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To 9% Debentures A/c |
|
|
4,00,000 |
||
|
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To Premium on Redemption A/c |
|
|
40,000 |
||
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(Debenture
of `4,00,000 issued at 5% Discount with the term payable
at 10% premium) |
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Question
35:
On 1st April, 2018, Sakshi Ltd. issued 1,000, 11%
Debentures of ` 100 each at a discount of 6%,
redeemable at a premium of 5% after three years.
Pass the necessary Journal entries for the issue of
debentures in the books of Sakshi Ltd. (CBSE 2020)
Answer:
|
Books of Sakshi Ltd. |
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|
Journal |
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|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
|
Bank
A/c |
Dr. |
|
94,000 |
|
|
|
To Debenture Application A/c |
|
|
94,000 |
|
|
|
(Being
Application Money Received for 1,000 at `94) |
|
|
|
|
|
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Debenture Application A/c Dr. |
|
94,000 |
|
|
|
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Discount on issue of Debenture A/c Dr. |
|
6,000 |
|
|
|
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Loss on Redemption on Debenture A/c Dr. |
|
5,000 |
|
|
|
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To 11% Debentures A/c |
|
|
1,00,000 |
|
|
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To Premium on redemption of debenture A/c |
|
|
5,000 |
|
|
|
(Being 1,60,000, 11% Debentures issued of ` 100 each at a premium of at `6) |
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Ts Grewal Solution 2024-2025
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Class 12 / Volume – 2