Question 1:
JS Ltd. issued 2,000; 9% Debentures of ` 100 each payable as follows:
` 25 on application; ` 25 on allotment and ` 50 on first and final call.
Applications were received for all the debentures along with the application
money did allotment was made. Call money was also received on the due date.
Pass necessary Journal entries in the books of the company.
Answer:
|
Books of JS Ltd. |
|||||
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
Bank A/c |
Dr. |
|
50,000 |
|
|
|
To 9%
Debenture Application A/c |
|
|
50,000 |
|
|
|
(Debenture application money received for 2,000
debentures at `
25 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
9% Debenture Application A/c |
Dr. |
|
50,000 |
|
|
|
To 9%
Debenture A/c |
|
|
50,000 |
|
|
|
(Debenture application money transferred to 9%
Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
9% Debenture Allotment A/c |
Dr. |
|
50,000 |
|
|
|
To 9%
Debentures A/c |
|
|
50,000 |
|
|
|
(Debenture allotment money due on 2,000 Debentures
at ` 25 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
50,000 |
|
|
|
To 9%
Debenture Allotment A/c |
|
|
50,000 |
|
|
|
(Debenture allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
9% Debenture First and Final Call A/c |
Dr. |
|
1,00,000 |
|
|
|
To 9%
Debentures A/c |
|
|
1,00,000 |
|
|
|
(Debenture first and final call money due on 2,000
debentures at `
50 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,00,000 |
|
|
|
To 9%
Debenture First and Final Call A/c |
|
|
1,00,000 |
|
|
|
(Debenture first and final call received) |
|
|
|
|
Question 2:
Droga
Ltd. issued 2,000; 9% Debentures of `
100 each on the following terms:
`20 on applications ;`
20 on allotment ; ` 30 on first call ; `
30 on final call.
The public applied for 2,400 debentures. Applications for 1,800 debentures were
accepted in full. Applications for 400 debentures were allotted 200
debentures and applications for 200 debentures were rejected. Pass
necessary Journal entries.
Answer:
|
Books of Droga Ltd. |
|||||
|
Journal |
|||||
|
Date |
Particular |
L.F. |
Debit ` |
Credit ` |
|
|
|
Bank A/c |
Dr. |
|
48,000 |
|
|
|
To 9%
Debenture Application A/c |
|
|
48,000 |
|
|
|
(Debenture application money received for 2,400
debentures at `
20 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
9% Debenture Application A/c |
Dr. |
|
48,000 |
|
|
|
To 9%
Debentures A/c |
|
|
40,000 |
|
|
|
To 9%
Debentures Allotment A/c |
|
|
4,000 |
|
|
|
To Bank A/c |
|
|
4,000 |
|
|
|
(Debenture application money transferred to 9%
Debenture account for 2,000 Debenture, adjusted to Debenture Allotment
account for 200 Debentures and money refunded for 200 debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
9% Debenture Allotment A/c |
Dr. |
|
40,000 |
|
|
|
To 9%
Debentures A/c |
|
|
40,000 |
|
|
|
(Debenture allotment money due on 2,000 debentures
at ` 20 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
36,000 |
|
|
|
To 9%
Debentures Allotment A/c |
|
|
36,000 |
|
|
|
(Debenture allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture First Call A/c |
Dr. |
|
60,000 |
|
|
|
To 9%
Debentures A/c |
|
|
60,000 |
|
|
|
(Debenture first call money due on 2,000 9%
debenture at `
30 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
60,000 |
|
|
|
To Debenture
First Call A/c |
|
|
60,000 |
|
|
|
(Debenture first call money received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Final Call A/c |
Dr. |
|
60,000 |
|
|
|
To 9%
Debentures A/c |
|
|
60,000 |
|
|
|
(Debentures final call money due on 2,000 9%
Debentures at `
30 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
60,000 |
|
|
|
To Debenture
Final Call A/c |
|
|
60,000 |
|
|
|
(Debenture final call received on 2,000 9% Debenture
at ` 30 each) |
|
|
|
|
|
|
|
|
|
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|
Question 3:
Venus Ltd. issued 40,000; 10% Debentures of `
100 each at par for cash payable in full along with the application.
Applications were received for 60,000 debentures . Debentures were
allotted and excess application money was refunded. Pass Journal entries in the
books of the company.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Bank A/c (60,000 ×100) |
Dr. |
|
60,00,000 |
|
|
|
To Debenture
Application and Allotment A/c |
|
|
|
60,00,000 |
|
|
(Received application
money on 60,000 Debenture) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application
and Allotment A/c |
Dr. |
|
60,00,000 |
|
|
|
To 10%
Debentures A/c (40,000 ×100) |
|
|
|
40,00,000 |
|
|
To Bank A/c |
|
|
|
20,00,000 |
|
|
(Application money
transferred to Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
Question 4:
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 5:
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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Ts Grewal Solution 2022-2023
Class 12 / Volume – 2
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12th TS Grewal’s Accountancy Solutions