Question
36:
Care Cosmetics Ltd. issued 50,000; 9%6 Debentures of ` 10 each on 1st April,
2021 redeemable at a premium of 10% after 10 years. According to the terms of
issue, ` 4 is payable on
application and balance on allotment of debentures. Record necessary Journal
entries regarding issue of debentures.
Answer:
|
Books of Care Cosmetics Ltd. |
|
|||||
|
Journal |
|
|||||
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
|
1-4-2021 |
Bank
A/c |
Dr. |
|
2,00,000 |
|
|
|
|
To Debenture Application A/c |
|
|
2,00,000 |
|
|
|
|
(Being
Application Money received for 50,000 debenture for `4) |
|
|
|
|
|
|
1-4-2021 |
Debenture Application A/c Dr. |
|
2,00,000 |
|
|
|
|
|
To 9%
Debenture A/c |
|
|
2,00,000 |
|
|
|
|
(Being interest paid) |
|
|
|
|
|
|
1-4-2021 |
Debenture Allotment A/c Dr. |
|
3,00,000 |
|
|
|
|
|
Loss on Redemption on Debenture A/c Dr. |
|
30,000 |
|
|
|
|
|
To 9% Debenture A/c |
|
|
3,00,000 |
|
|
|
|
To Premium on redemption of debenture A/c |
|
|
30,000 |
|
|
|
|
(Being
interest allowed on debenture) |
|
|
|
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Question 37:
Pass
necessary Journal entries relating to the issue of debentures for the
following:
(a)
Issued `
28,000; 10% Debentures of `
100 each at a premium of 15% redeemable at par.
(b) Issued `
30,000; 10% Debentures of `
100 each at a premium of 10% and redeemable at a premium of 15%.
(c) Issued `
80,000; 10% Debentures of `
100 each at par repayable at a premium of 10%.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
(a) |
Bank A/c (280 debentures × 115) |
Dr. |
|
32,200 |
|
|
|
To
Debenture Application and Allotment A/c |
|
|
|
32,200 |
|
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
Application and Allotment A/c |
Dr. |
|
32,200 |
|
|
|
To
10% Debentures A/c |
|
|
|
28,000 |
|
|
To
Securities Premium Reserve A/c |
|
|
|
4,200 |
|
|
(280; 10% Debentures issued at a premium of 15%) |
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
Bank A/c |
Dr. |
|
33,000 |
|
|
|
To
Debenture Application and Allotment A/c |
|
|
|
33,000 |
|
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
Application and Allotment A/c |
Dr. |
|
33,000 |
|
|
|
Loss
On Issue of debentures A/c |
Dr. |
|
4,500 |
|
|
|
To
10% Debentures A/c |
|
|
|
30,000 |
|
|
To
Securities Premium Reserve A/c |
|
|
|
3,000 |
|
|
To
Premium on Redemption of debentures A/c |
|
|
|
4,500 |
|
|
(300; 10% Debentures issued at a premium of 10% and
redeemable at a premium of 15%) |
|
|
|
|
|
|
|
|
|
|
|
|
(c) |
Bank A/c |
Dr. |
|
80,000 |
|
|
|
To
Debenture Application and Allotment A/c |
|
|
|
80,000 |
|
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
Application and Allotment A/c |
Dr. |
|
80,000 |
|
|
|
Loss
On Issue of debentures A/c |
Dr. |
|
8,000 |
|
|
|
To
10% Debentures A/c |
|
|
|
80,000 |
|
|
To
Premium on Redemption of debentures A/c |
|
|
|
8,000 |
|
|
(800; 10% Debentures issued at par and redeemable at
premium of 10%) |
|
|
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|
|
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Question 38:
Pass
necessary Journal entries for the issue of debentures in the following cases:
(a)
40,000; 12% Debentures of `100 each
issued at a premium of 5% redeemable at par.
(b)
70,000; 12% Debentures of `100 each
issued at a premium of 5% redeemable at `110.
(Delhi2013)
Answer:
(a)
|
Journal |
|||||
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
|
Bank
A/c |
Dr. |
|
40,00,000 |
|
|
|
To Debenture Application A/c |
|
|
40,00,000 |
|
|
|
(Being
Application Money Received for 40,000 at `10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c Dr. |
|
40,00,000 |
|
|
|
|
Loss on Redemption on Debenture A/c Dr. |
|
2,00,000 |
|
|
|
|
To
12% Debentures A/c |
|
|
40,00,000 |
|
|
|
To Premium on redemption of debenture A/c |
|
|
2,00,000 |
|
|
|
(Being 40,000, 12% Debentures issued of `100 each at a premium of at `5) |
|
|
|
|
|
|
|
|
|
||
(b)
|
Journal |
|||||
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
|
Bank
A/c |
Dr. |
|
73,50,000 |
|
|
|
To Debenture Application A/c |
|
|
73,50,000 |
|
|
|
(Being
Application Money Received for 70,000 at `105) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c Dr. |
|
73,50,000 |
|
|
|
|
Loss on Redemption on Debenture A/c Dr. |
|
7,00,000 |
|
|
|
|
To
12% Debentures A/c |
|
|
70,00,000 |
|
|
|
To Securities premium reserve A/c |
|
|
3,50,000 |
|
|
|
To Premium on redemption of debenture A/c |
|
|
7,00,000 |
|
|
|
(Being 70,000, 12% Debentures issued of `100 each at a premium of at `5, redeemable at `110) |
|
|
|
|
|
|
|
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||
Question 39:
Chiranjeevi Limited issued 2,000, 10% Debentures of 100 each.
Pass the necessary Journal entries for the issue of debentures in the following
cases:
(a) When debentures
were issued at 10% premium, redeemable at 5% premium.
(b) When debentures
were issued at 5% discount, redeemable at 10% premium.
(c) When debentures
were issued at par, redeemable at a premium of 10%. (CBSE 2023)
Answer:
(Case-1)
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
Bank A/c |
Dr. |
|
2,20,000 |
|
|
|
|
To
Debenture Application and Allotment A/c |
|
|
|
2,20,000 |
|
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
Application and Allotment A/c |
Dr. |
|
2,20,000 |
|
|
|
Loss
On Issue of debentures A/c |
Dr. |
|
10,000 |
|
|
|
To
9% Debentures A/c |
|
|
|
2,00,000 |
|
|
To
Securities Premium Reserve A/c |
|
|
|
20,000 |
|
|
To
Premium on Redemption of debentures A/c |
|
|
|
10,000 |
|
|
(2,000; 9% Debentures issued of `100 each at a premium of 9% and redeemable at a
premium of 5%) |
|
|
|
|
|
|
|
|
|
|
|
(Case-2)
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
Bank A/c |
Dr. |
|
1,90,000 |
|
|
|
|
To
Debenture Application and Allotment A/c |
|
|
|
1,90,000 |
|
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
Application and Allotment A/c |
Dr. |
|
1,90,000 |
|
|
Discount
On Issue of debentures A/c |
Dr. |
10,000 |
|||
|
|
Loss
On Issue of debentures A/c |
Dr. |
|
20,000 |
|
|
|
To
9% Debentures A/c |
|
|
|
2,00,000 |
|
|
To
Premium on Redemption of debentures A/c |
|
|
|
20,000 |
|
|
(2,000; 9% Debentures issued of `100 each at a Discount of 5% and redeemable at a
premium of 9%) |
|
|
|
|
|
|
|
|
|
|
|
(Case-3)
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
Bank A/c |
Dr. |
|
2,00,000 |
|
|
|
|
To
Debenture Application and Allotment A/c |
|
|
|
2,00,000 |
|
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
Application and Allotment A/c |
Dr. |
|
2,00,000 |
|
|
|
Loss
On Issue of debentures A/c |
Dr. |
|
20,000 |
|
|
|
To
9% Debentures A/c |
|
|
|
2,00,000 |
|
|
To
Premium on Redemption of debentures A/c |
|
|
|
20,000 |
|
|
(2,000; 9% Debentures issued of `100 each at a par and redeemable at a premium of 9%) |
|
|
|
|
|
|
|
|
|
|
|
Question 40:
Pass necessary Journal
entries for the issue of debentures in the following cases:
(i) Issued `75,00,000, 9% Debentures of `100 each at a premium of 10% redeemable at a premium
of 5% after 3 years.
(ii) Issued 8,000, 9%
Debentures of `100
each at a discount of 6% redeemable at a premium of 3% after 5 years.
(iii) Issued 90,000, 9%
Debentures of `100
each at par, redeemable at par after 4 years. (CBSE 2023)
Answer:
(Case-1)
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
Bank A/c |
Dr. |
|
82,50,000 |
|
|
|
|
To
Debenture Application and Allotment A/c |
|
|
|
82,50,000 |
|
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
Application and Allotment A/c |
Dr. |
|
82,50,000 |
|
|
|
Loss
On Issue of debentures A/c |
Dr. |
|
3,75,000 |
|
|
|
To
9% Debentures A/c |
|
|
|
75,00,000 |
|
|
To
Securities Premium Reserve A/c |
|
|
|
7,50,000 |
|
|
To
Premium on Redemption of debentures A/c |
|
|
|
3,75,000 |
|
|
(75,000; 9% Debentures issued of `100 each at a premium of 9% and redeemable at a
premium of 5%) |
|
|
|
|
|
|
|
|
|
|
|
(Case-2)
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
Bank A/c |
Dr. |
|
7,52,000 |
|
|
|
|
To
Debenture Application and Allotment A/c |
|
|
|
7,52,000 |
|
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
Application and Allotment A/c |
Dr. |
|
7,52,000 |
|
|
Discount
On Issue of debentures A/c |
Dr. |
48,000 |
|||
|
|
Loss
On Issue of debentures A/c |
Dr. |
|
24,000 |
|
|
|
To
9% Debentures A/c |
|
|
|
8,00,000 |
|
|
To
Premium on Redemption of debentures A/c |
|
|
|
24,000 |
|
|
(8,000; 9% Debentures issued of `100 each at a Discount of 6% and redeemable at a
premium of 3%) |
|
|
|
|
|
|
|
|
|
|
|
Case-3)
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
Bank A/c |
Dr. |
|
90,00,000 |
|
|
|
|
To
Debenture Application and Allotment A/c |
|
|
|
90,00,000 |
|
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture
Application and Allotment A/c |
Dr. |
|
90,00,000 |
|
|
|
To
9% Debentures A/c |
|
|
|
90,00,000 |
|
|
(90,000; 9% Debentures issued of `100 each at a par and redeemable at a par) |
|
|
|
|
|
|
|
|
|
|
|
Ts Grewal Solution 2024-2025
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Class 12 / Volume – 2