Question 46:
Garvit
Ltd. invited applications for issuing 3,000, 11% Debentures of 100 each at a
discount of 6%. The full amount was payable on application. Applications were
received for 3,600 debentures. Applications for 600 debentures were rejected and
the application money was refunded. Debentures were allotted to the remaining
applicants.
Pass the necessary Journal entries for the above
transactions, including writing off the Discount on Issue of Debentures, in the
books of Garvit Ltd.
Answer:
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In the books of Garvit
Ltd. Journal |
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Date |
Particulars |
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L.F. |
Debit |
Credit |
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2018 |
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April 01 |
Bank A/c (3,600 × 94) |
Dr. |
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3,38,400 |
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To Debentures Application & Allotment A/c (3,600 × 94) |
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3,38,400 |
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(Being application money received on 11% Debentures issued
at 6%) |
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April 01 |
Debentures Application & Allotment A/c |
Dr. |
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3,38,400 |
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Discount on Issue of Debentures A/c (3,000×4) |
Dr. |
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18,000 |
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To 11% Debentures A/c (3,000×100) |
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3,00,000 |
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To Bank A/c (600×94) |
56,400 |
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(Being application & allotment money adjusted) |
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31 March 19 |
Securities Premium Reserve A/c |
Dr. |
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10,000 |
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Statement of Profit & Loss A/c |
Dr. |
20,000 |
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To Loss on Issue of Debentures A/c |
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30,000 |
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(Being loss on issue of debentures written off) |
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Question 47:
On 1st June, 2021, R Energy Ltd. issued 10,000, 7% Debentures
of `
100 each at a discount of 10% redeemable at a premium of 10% at the end of five
years. All the debentures were subscribed and allotment was made.
Prepare the Balance Sheet (extract) as at 31st March, 2022.
Answer:
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In the books of R Energy Ltd. An Extract of Balance Sheet As at 31st March, 2022 |
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Particulars |
Note No. |
(`) |
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I. EQUITIES AND LIABILITIES |
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1. Shareholders’ Funds |
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Reserves and Surplus |
3 |
(2,00,000) |
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2. Non-Current Liabilities |
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a. Long-term Borrowings |
1 |
10,00,000 |
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b. Other long-term
Liabilities |
2 |
1,00,000 |
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Total |
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9,00,000 |
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II. Assets |
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Current Assets |
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Cash and Cash Equivalents |
4 |
9,00,000 |
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Total |
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9,00,000 |
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Notes to Accounts: |
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Note |
Particulars |
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(`) |
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1. |
Long-term Borrowings |
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10,000, 7% Debentures of `100
each issued at |
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10,00,000 |
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2. |
Other long-term Liabilities |
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Premium on Redemption of Debentures |
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1,00,000 |
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3. |
Reserves and Surplus |
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Statement of Profit & Loss |
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Less: Loss on
Issue of Debentures written off |
(2,00,000) |
(2,00,000) |
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4. |
Cash and Cash Equivalents |
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On 7% debentures @ `
90 each (10,000 × 90) |
9,00,000 |
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Question 48:
On 1st April, 2021, Solar Power Ltd. issued 10,000, 8% Debentures of ` 100 each at a discount of 5% redeemable at
a premium of 15% at the end of five years. All the debentures were subscribed
and allotment was made. The company had balance in Securities Premium Reserve
of ` 80,000.
Prepare the Balance Sheet (extract) as at 31st March, 2022.
Answer:
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In the books of Solar Power Ltd. An Extract of Balance Sheet As at 31st March, 2022 |
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Particulars |
Note |
(`) |
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I. EQUITIES AND LIABILITIES |
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1. Shareholders’ Funds |
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Reserves and Surplus |
3 |
(1,20,000) |
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2. Non-Current Liabilities |
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a. Long-term
Borrowings |
1 |
10,00,000 |
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b. Other long-term
Liabilities |
2 |
1,50,000 |
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Total |
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II. Assets |
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Current Assets |
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Cash and Cash Equivalents |
4 |
9,50,000 |
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Total |
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Notes to Accounts: |
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Note |
Particulars |
(`) |
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1. |
Long-term Borrowings |
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10,000, 8% Debentures of `100
each issued |
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10,00,000 |
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2. |
Other long-term Liabilities |
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Premium on Redemption of Debentures |
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1,50,000 |
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3. |
Reserves and Surplus |
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Securities Premium Reserve |
80,000 |
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Less: Loss on
Issue of Debentures written off |
(80,000) |
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Statement of Profit and Loss |
– |
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Less: Loss on
Issue of Debentures written off |
(1,20,000) |
(1,20,000) |
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4. |
Cash and Cash Equivalents |
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On 8% debentures @ `
95 each (10,000 × 95) |
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9,50,000 |
Question 49: On 1st April, 2018. Mathew Ltd. issued 10,000, 9% Debentures of ` 100 each
at a discount of 5%, redeemable at a premium of 5%. These debentures were
redeemable as follows:
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On 31st March, 2019 |
2,000 Debentures; |
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On 31st March, 2020 |
5,000 Debentures; |
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On 31st March, 2021 |
3,000 Debentures. |
Prepare the Loss on Issue of Debentures Account, Debentures
Account and Premium on Redemption of Debentures Account for three years.
Answer:
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In the books of Mathew Ltd. |
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Dr. |
Loss on Issue of Debentures A/c |
Cr. |
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Date |
Particulars |
(`) |
Date |
Particulars |
(`) |
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2018 |
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2019 |
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April 01 |
To 9% Debentures
A/c |
1,00,000 |
March 31 |
By Statement of Profit & Loss A/c |
1,00,000 |
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1,00,000 |
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1,00,000 |
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Dr. |
9% Debentures A/c |
Cr. |
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Date |
Particulars |
(`) |
Date |
Particulars |
(`) |
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2019 |
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2018 |
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March 31 |
To Debentureholder’s A/c |
2,00,000 |
April 01 |
By Debenture Application & Allotment A/c |
9,50,000 |
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March 31 |
To balance c/d |
8,00,000 |
April 01 |
By Loss on Issue of Debentures A/c |
50,000 |
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10,00,000 |
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10,00,000 |
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2020 |
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2019 |
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March 31 |
To Debentureholder’s A/c |
5,00,000 |
April 01 |
By balance b/d |
8,00,000 |
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March 31 |
To balance c/d |
3,00,000 |
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8,00,000 |
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8,00,000 |
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2021 |
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2020 |
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March 31 |
To Debentureholder’s A/c |
3,00,000 |
April 01 |
By balance b/d |
3,00,000 |
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3,00,000 |
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3,00,000 |
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Dr. |
Premium on Redemption of Debentures A/c |
Cr. |
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Date |
Particulars |
(`) |
Date |
Particulars |
(`) |
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2019 |
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2018 |
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March 31 |
To Debentureholder’s A/c |
10,000 |
April 01 |
By Loss on Issue of Debentures A/c |
50,000 |
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March 31 |
To balance c/d |
40,000 |
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50,000 |
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50,000 |
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2020 |
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2019 |
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March 31 |
To Debentureholder’s A/c |
25,000 |
April 01 |
By balance b/d |
40,000 |
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March 31 |
To balance c/d |
15,000 |
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40,000 |
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40,000 |
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2021 |
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2020 |
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March 31 |
To Debentureholder’s A/c |
15,000 |
April 01 |
By balance b/d |
15,000 |
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15,000 |
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|
15,000 |
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Ts Grewal Solution 2022-2023
Class 12 / Volume – 2
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12th TS Grewal’s Accountancy Solutions