Question 11: Kati
Ltd. issued 8,000, 99% Debentures of ` 100 each at a discount of 10%. The full amount was payable on
application. Applications were received for 9,000 debentures and allotment was
made on pro rata basis.
Pass the necessary Journal entries for the above
transactions in the books of Kati Ltd. (CBSE 2020)
Answer:
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Books of Kati Ltd. |
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Journal |
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Date |
Particular |
L.F. |
Debit ` |
Credit ` |
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Bank
A/c |
Dr. |
|
8,10,000 |
|
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To 9% Debenture
Application and Allotment A/c |
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8,10,000 |
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(Debenture
application money received for 9,000 debentures at ` 90 each face value `100 at 10% discount) |
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9%
Debenture Application A/c Discount
on issue of Debenture A/c |
Dr. Dr. |
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8,10,000 80,000 |
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To 9% Debentures A/c |
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8,00,000 |
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To Bank A/c |
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90,000 |
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(Debenture
application money transferred to 9% Debenture account for 8,000 Debenture,
and money refunded for 1,000 debentures) |
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Question 12:
LinuxLtd. issued
12,000; 8% Debentures of ` 100
each at a discount of 5% payable as 25% on application;20% on allotment and
balance after three months.
Pass Journal entries.
Answer:
Face
Value of Debenture = ` 100
Discount
(` 100 × 5%) = `
5
∴ Issue Price = `
95
Amount
Payable as:
|
On
Application (25%) |
` 25 per debenture |
|
On
Allotment (20%) |
` 20 (25 – 5) per debenture |
|
On
First and Final Call (50%) |
` 50 per debenture |
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Journal |
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|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
Bank
A/c |
Dr. |
|
3,00,000 |
|
|
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To 8% Debenture
Application A/c |
|
|
3,00,000 |
|
|
|
(Application
money received for 12,000 8% Debentures at ` 25 each) |
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8%
Debenture Application A/c |
Dr. |
|
3,00,000 |
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To 8% Debentures A/c |
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|
3,00,000 |
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(Debenture
application money transferred to 8% Debentures account) |
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8%
Debentures Allotment A/c |
Dr. |
|
2,40,000 |
|
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Discount
on Issue of Debentures A/c |
Dr. |
|
60,000 |
|
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|
To 8% Debentures A/c |
|
|
3,00,000 |
|
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|
(Allotment
money due on 12,000 8% Debentures at ` 20 each at discount of ` 5) |
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Bank
A/c |
Dr. |
|
2,40,000 |
|
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To 8% Debenture
Allotment A/c |
|
|
2,40,000 |
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(Allotment
money received) |
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8%
Debenture First and Final Call A/c |
Dr. |
|
6,00,000 |
|
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To 8% Debentures A/c |
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|
6,00,000 |
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(First
and final call money due on 12,000 8% Debentures at ` 50 each) |
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Bank
A/c |
Dr. |
|
6,00,000 |
|
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To 8% Debentures First
and Final Call A/c |
|
|
6,00,000 |
|
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(First
and Final call money received) |
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Question 13:
AlkaLtd
.issued 5,000, 10% Debentures of ` 1,000
each at a discount of 10% redeemable at a premium of 5% after 5 years .
According to the terms of issue ` 500
was payable on application and the balance amount on allotment of
debentures. Record necessary entries regarding issue of 10%
Debentures. (Delhi 2015 C)
Answer:
|
Journal |
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|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Bank A/c (5,000×500) |
Dr. |
|
25,00,000 |
|
|
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To Debenture Application A/c |
|
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|
25,00,000 |
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(Received application money on
5,000 debentures) |
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Debenture Application A/c |
Dr. |
|
25,00,000 |
|
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To 10% Debentures A/c |
|
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|
25,00,000 |
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|
(Transfer of application money to
Debentures A/c) |
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Debenture Allotment A/c (5,000×400) |
Dr. |
|
20,00,000 |
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Discount
on issue of Debentures A/c (5,000×100) |
|
|
5,00,000 |
|
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Loss on issue of Debentures A/c
(5,000×50) |
Dr. |
|
2,50,000 |
|
|
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To 10% Debentures A/c
(5,000×500) |
|
|
|
25,00,000 |
|
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To Premium on Redemption of
Debentures A/c (5,000×50) |
|
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|
2,50,000 |
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(Allotment due on 5,000 Debentures
at a discount of ` 100 per debentures and redeemable at premium of 5%) |
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Bank A/c |
Dr. |
|
20,00,000 |
|
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To Debenture Allotment A/c |
|
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|
20,00,000 |
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(Allotment money received) |
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Quesiton 14:
The Decor Ltd. issued 20,000, 69%
Debentures of 100 each at 10% discount payable `30 on application, `40 (after discount) and balance
as first and final call. Debentures were subscribed and allotment was made.
Amount due on allotment was made and received. First and final call is yet to
be made.
You are required to pass the necessary Journal entries.
Answer:
|
Books of Decor Ltd. |
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Journal |
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Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
Bank
A/c |
Dr. |
|
6,00,000 |
|
|
|
|
To 6% Debenture Application
A/c |
|
|
6,00,000 |
|
|
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|
(Debenture
application money received for 20,000 debentures at ` 30 each) |
|
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6%
Debenture Application A/c |
Dr. |
|
6,00,000 |
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|
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To 6% Debenture A/c |
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|
6,00,000 |
|
|
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(Debenture
application money transferred to 9% Debentures A/c) |
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6%
Debenture Allotment A/c |
Dr. |
|
8,00,000 |
|
|
|
|
Discount
on Issue of Debenture A/c Dr. |
2,00,000 |
|
|||
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To 6% Debentures A/c |
|
|
10,00,000 |
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(Debenture
allotment money due on 20,000 Debentures at ` 40 each after ` 10 Discount) |
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Bank
A/c |
Dr. |
|
8,00,000 |
|
|
|
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To 6% Debenture Allotment
A/c |
|
|
8,00,000 |
|
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|
(Debenture
allotment money received) |
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Question 15:
Joy
Ltd. company bought a Building for ` 9,00,000 and the consideration was paid by issuing 10%
Debentures of the normal (face) value of ` 100 each at a discount of 10%.
Give
Journal entries.
Answer:
|
Books of Joy Limited |
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|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Building
A/c |
Dr. |
|
9,00,000 |
|
|
|
To Vendor A/c |
|
|
9,00,000 |
|
|
|
(Building
purchased) |
|
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Vendor
A/c |
Dr. |
|
9,00,000 |
|
|
|
Discount
on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
|
To 10% Debentures A/c |
|
|
10,00,000 |
|
|
|
(Issued
10,000, 10% debentures at 10% discount) |
|
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Working Note:
Number of debentute to be issued= Purchase
consideration/issue price=9,00,000/90=10,000 Debentures
Ts Grewal Solution 2024-2025
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Class 12 / Volume – 2