TS Grewal i (2014) Solutions for Class 12 Commerce Accountancy Chapter 8 Company Accounts Issue Of Debentures are provided here with simple step-by-step explanations. These solutions for Company Accounts Issue Of Debentures are extremely popular among class 12 Commerce students for Accountancy Company Accounts Issue Of Debentures Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the TS Grewal i (2014) Book of class 12 Commerce Accountancy Chapter 8 are provided here for you for free. You will also love the ad-free experience on Meritnation’s TS Grewal i (2014) Solutions. All TS Grewal i (2014) Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.
Page No 8.39:
Question 1:
Answer:
Books of Vishwas Ltd. |
|||||
Journal |
|||||
Date |
Particulars
|
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
50,000 |
|
|
To 9% Debenture Application A/c |
|
|
50,000 |
|
|
(Debenture application money received for 2,000 debentures at Rs 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 Rs 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 Rs 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) |
|
|
|
Page No 8.39:
Question 2:
Books of Vishwas Ltd. |
|||||
Journal |
|||||
Date |
Particulars
|
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
50,000 |
|
|
To 9% Debenture Application A/c |
|
|
50,000 |
|
|
(Debenture application money received for 2,000 debentures at Rs 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 Rs 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 Rs 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) |
|
|
|
Answer:
In the Books of Narain Laxmi Ltd. Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Bank A/c (10,000 debentures × 135) |
Dr. |
|
13,50,000 |
|
|
|
To Debenture Application and Allotment A/c |
|
|
|
13,50,000 |
|
|
(Application money received on 10,000 12% debenture) |
|
|
|
||
|
|
|
|
|
||
|
Debenture Application and Allotment A/c |
Dr. |
|
13,50,000 |
|
|
|
To 12% Debentures A/c |
|
|
|
7,50,000 |
|
|
To Securities Premium Reserve A/c |
|
|
|
2,62,500 |
|
|
To Bank A/c |
|
|
|
3,37,500 |
|
|
(7,500; 12% Debentures of Rs 100 each issued at a premium of Rs 35 and excess money refunded) |
|
|
|
||
|
|
|
|
|
|
|
Page No 8.40:
Question 3:
In the Books of Narain Laxmi Ltd. Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Bank A/c (10,000 debentures × 135) |
Dr. |
|
13,50,000 |
|
|
|
To Debenture Application and Allotment A/c |
|
|
|
13,50,000 |
|
|
(Application money received on 10,000 12% debenture) |
|
|
|
||
|
|
|
|
|
||
|
Debenture Application and Allotment A/c |
Dr. |
|
13,50,000 |
|
|
|
To 12% Debentures A/c |
|
|
|
7,50,000 |
|
|
To Securities Premium Reserve A/c |
|
|
|
2,62,500 |
|
|
To Bank A/c |
|
|
|
3,37,500 |
|
|
(7,500; 12% Debentures of Rs 100 each issued at a premium of Rs 35 and excess money refunded) |
|
|
|
||
|
|
|
|
|
|
|
Answer:
Books of Raa Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
50,000 |
|
|
To 8% Debenture Application A/c |
|
|
50,000 |
|
|
(Debenture application money received for 5,000 debentures at Rs 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. |
|
1,25,000 |
|
|
To 8% Debentures A/c |
|
|
1,00,000 |
|
|
To Securities Premium A/c |
|
|
25,000 |
|
|
(Debenture allotment due on 5,000 8% Debentures at Rs 25 including premium of Rs 5) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,25,000 |
|
|
To 8% Debentures Allotment A/c |
|
|
1,25,000 |
|
|
(Debenture allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
8% Debentures First and Final Call A/c |
Dr. |
|
3,50,000 |
|
|
To 8% Debenture A/c |
|
|
3,50,000 |
|
|
(Debenture first and final call due on 5,000 Debentures at Rs 70 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
3,50,000 |
|
|
To 8% Debenture First and Final Call A/c |
|
|
3,50,000 |
|
|
(Debenture first and final call received) |
|
|
|
|
|
|
|
|
|
Page No 8.40:
Question 4:
Books of Raa Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
50,000 |
|
|
To 8% Debenture Application A/c |
|
|
50,000 |
|
|
(Debenture application money received for 5,000 debentures at Rs 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. |
|
1,25,000 |
|
|
To 8% Debentures A/c |
|
|
1,00,000 |
|
|
To Securities Premium A/c |
|
|
25,000 |
|
|
(Debenture allotment due on 5,000 8% Debentures at Rs 25 including premium of Rs 5) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,25,000 |
|
|
To 8% Debentures Allotment A/c |
|
|
1,25,000 |
|
|
(Debenture allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
8% Debentures First and Final Call A/c |
Dr. |
|
3,50,000 |
|
|
To 8% Debenture A/c |
|
|
3,50,000 |
|
|
(Debenture first and final call due on 5,000 Debentures at Rs 70 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
3,50,000 |
|
|
To 8% Debenture First and Final Call A/c |
|
|
3,50,000 |
|
|
(Debenture first and final call received) |
|
|
|
|
|
|
|
|
|
Answer:
Face Value of Debenture = Rs 100
Discount (Rs 100 × 5%) = Rs 5
∴ Issue Price = Rs 95
Amount Payable as:
On Application (25%) |
Rs 25 per debenture |
On Allotment (20%) |
Rs 20 (25 – 5) per debenture |
On First and Final Call (50%) |
Rs 50 per debenture |
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
3,00,000 |
|
|
To 8% Debenture Application A/c |
|
|
3,00,000 |
|
|
(Application money received for 12,000 8% Debentures at Rs 25 each) |
|
|
|
|
|
|
|
|
|
|
|
8% Debenture Application A/c |
Dr. |
|
3,00,000 |
|
|
To 8% Debentures A/c |
|
|
3,00,000 |
|
|
(Debenture application money transferred to 8% Debentures account) |
|
|
|
|
|
|
|
|
|
|
|
8% Debentures Allotment A/c |
Dr. |
|
2,40,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
60,000 |
|
|
To 8% Debentures A/c |
|
|
3,00,000 |
|
|
(Allotment money due on 12,000 8% Debentures at Rs 20 each at discount of Rs 5) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,40,000 |
|
|
To 8% Debenture Allotment A/c |
|
|
2,40,000 |
|
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
8% Debenture First and Final Call A/c |
Dr. |
|
6,00,000 |
|
|
To 8% Debentures A/c |
|
|
6,00,000 |
|
|
(First and final call money due on 12,000 8% Debentures at Rs 50 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
6,00,000 |
|
|
To 8% Debentures First and Final Call A/c |
|
|
6,00,000 |
|
|
(First and Final call money received) |
|
|
|
|
|
|
|
|
|
Page No 8.40:
Question 5:
Face Value of Debenture = Rs 100
Discount (Rs 100 × 5%) = Rs 5
∴ Issue Price = Rs 95
Amount Payable as:
On Application (25%) |
Rs 25 per debenture |
On Allotment (20%) |
Rs 20 (25 – 5) per debenture |
On First and Final Call (50%) |
Rs 50 per debenture |
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
3,00,000 |
|
|
To 8% Debenture Application A/c |
|
|
3,00,000 |
|
|
(Application money received for 12,000 8% Debentures at Rs 25 each) |
|
|
|
|
|
|
|
|
|
|
|
8% Debenture Application A/c |
Dr. |
|
3,00,000 |
|
|
To 8% Debentures A/c |
|
|
3,00,000 |
|
|
(Debenture application money transferred to 8% Debentures account) |
|
|
|
|
|
|
|
|
|
|
|
8% Debentures Allotment A/c |
Dr. |
|
2,40,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
60,000 |
|
|
To 8% Debentures A/c |
|
|
3,00,000 |
|
|
(Allotment money due on 12,000 8% Debentures at Rs 20 each at discount of Rs 5) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,40,000 |
|
|
To 8% Debenture Allotment A/c |
|
|
2,40,000 |
|
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
8% Debenture First and Final Call A/c |
Dr. |
|
6,00,000 |
|
|
To 8% Debentures A/c |
|
|
6,00,000 |
|
|
(First and final call money due on 12,000 8% Debentures at Rs 50 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
6,00,000 |
|
|
To 8% Debentures First and Final Call A/c |
|
|
6,00,000 |
|
|
(First and Final call money received) |
|
|
|
|
|
|
|
|
|
Answer:
Face Value of Debenture = Rs 100
Premium (Rs 100 × 10%) = Rs 10
∴ Issue Price = Rs 110
Amount Payable as:
On Application (25%) |
Rs 25 including premium of Rs 10 (i.e. Rs 10 + 15) |
On Allotment (85%) |
Rs 85 per debenture |
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
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 Rs 25 including premium of Rs10 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 Rs 85 each) |
|
|
|
|
|
|
|
|
|
|
Cash Book |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
L.F. |
Bank Rs |
Date |
Particulars |
L.F. |
Bank Rs |
|
Debenture Application |
|
2,50,000 |
|
|
|
|
|
Debenture Allotment |
|
8,50,000 |
|
|
|
|
|
|
|
|
|
Balance c/d |
|
11,00,000 |
|
|
|
11,00,000 |
|
|
|
11,00,000 |
|
|
|
|
|
|
|
|
Page No 8.40:
Question 6:
Face Value of Debenture = Rs 100
Premium (Rs 100 × 10%) = Rs 10
∴ Issue Price = Rs 110
Amount Payable as:
On Application (25%) |
Rs 25 including premium of Rs 10 (i.e. Rs 10 + 15) |
On Allotment (85%) |
Rs 85 per debenture |
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
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 Rs 25 including premium of Rs10 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 Rs 85 each) |
|
|
|
|
|
|
|
|
|
|
Cash Book |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
L.F. |
Bank Rs |
Date |
Particulars |
L.F. |
Bank Rs |
|
Debenture Application |
|
2,50,000 |
|
|
|
|
|
Debenture Allotment |
|
8,50,000 |
|
|
|
|
|
|
|
|
|
Balance c/d |
|
11,00,000 |
|
|
|
11,00,000 |
|
|
|
11,00,000 |
|
|
|
|
|
|
|
|
Answer:
Books of A Ltd. |
|||||
Journal |
|||||
Date |
Particular |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
48,000 |
|
|
To 9% Debenture Application A/c |
|
|
48,000 |
|
|
(Debenture application money received for 2,400 debentures at Rs 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 Rs 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 Rs 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 Rs 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 Rs 30 each) |
|
|
|
|
|
|
|
|
|
Page No 8.40:
Question 7:
Books of A Ltd. |
|||||
Journal |
|||||
Date |
Particular |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
48,000 |
|
|
To 9% Debenture Application A/c |
|
|
48,000 |
|
|
(Debenture application money received for 2,400 debentures at Rs 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 Rs 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 Rs 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 Rs 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 Rs 30 each) |
|
|
|
|
|
|
|
|
|
Answer:
In the Books of Vijay Laxmi Ltd. Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Bank A/c |
Dr. |
|
22,95,000 |
|
|
|
To Debenture Application and Allotment A/c |
|
|
|
22,95,000 |
|
|
(Application money received on 13,500 12% debenture) |
|
|
|
||
|
|
|
|
|
||
|
Debenture Application and Allotment A/c |
Dr. |
|
22,95,000 |
|
|
|
To 12% Debentures A/c |
|
|
|
10,00,000 |
|
|
To Securities Premium Reserve A/c |
|
|
|
7,00,000 |
|
|
To Bank A/c |
|
|
|
5,95,000 |
|
|
(10,000; 12% Debentures issued at a premium of Rs 70 and excess money refunded) |
|
|
|
||
|
|
|
|
|
||
Page No 8.40:
Question 8:
In the Books of Vijay Laxmi Ltd. Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Bank A/c |
Dr. |
|
22,95,000 |
|
|
|
To Debenture Application and Allotment A/c |
|
|
|
22,95,000 |
|
|
(Application money received on 13,500 12% debenture) |
|
|
|
||
|
|
|
|
|
||
|
Debenture Application and Allotment A/c |
Dr. |
|
22,95,000 |
|
|
|
To 12% Debentures A/c |
|
|
|
10,00,000 |
|
|
To Securities Premium Reserve A/c |
|
|
|
7,00,000 |
|
|
To Bank A/c |
|
|
|
5,95,000 |
|
|
(10,000; 12% Debentures issued at a premium of Rs 70 and excess money refunded) |
|
|
|
||
|
|
|
|
|
||
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Building A/c |
Dr. |
|
9,00,000 |
|
|
To Vendor A/c |
|
|
9,00,000 |
|
|
(Building purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
9,00,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
To Debentures A/c |
|
|
10,00,000 |
|
|
(Issued 10,000 debentures at 10% discount) |
|
|
|
|
|
|
|
|
|
Working Note:
Page No 8.40:
Question 9:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Building A/c |
Dr. |
|
9,00,000 |
|
|
To Vendor A/c |
|
|
9,00,000 |
|
|
(Building purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
9,00,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
To Debentures A/c |
|
|
10,00,000 |
|
|
(Issued 10,000 debentures at 10% discount) |
|
|
|
|
|
|
|
|
|
Working Note:
Answer:
Books of Wye Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Sundry Assets A/c |
Dr. |
|
2,00,000 |
|
|
To Vendor A/c |
|
|
2,00,000 |
|
|
(Business purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
65,000 |
|
|
To Cash A/c |
|
|
65,000 |
|
|
(Amount paid to Vendor in cash) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
1,35,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
15,000 |
|
|
To 9% Debentures A/c |
|
|
1,50,000 |
|
|
(Issued 1,500 debentures at 10% discount) |
|
|
|
|
|
|
|
|
|
Working Note:
Page No 8.40:
Question 10:
Books of Wye Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Sundry Assets A/c |
Dr. |
|
2,00,000 |
|
|
To Vendor A/c |
|
|
2,00,000 |
|
|
(Business purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
65,000 |
|
|
To Cash A/c |
|
|
65,000 |
|
|
(Amount paid to Vendor in cash) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
1,35,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
15,000 |
|
|
To 9% Debentures A/c |
|
|
1,50,000 |
|
|
(Issued 1,500 debentures at 10% discount) |
|
|
|
|
|
|
|
|
|
Working Note:
Answer:
Books of Newton Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Machinery A/c |
Dr. |
|
5,76,000 |
|
|
To B |
|
|
5,76,000 |
|
|
(Machinery purchased from B) |
|
|
|
|
|
|
|
|
|
|
|
B |
Dr. |
|
5,76,000 |
|
|
Discount on Issue of Debenture A/c |
Dr. |
|
24,000 |
|
|
To 9% Debenture A/c |
|
|
6,00,000 |
|
|
(Issued 6,000 debentures at 4% discount) |
|
|
|
|
|
|
|
|
|
Working Note:
Page No 8.40:
Question 11:
Books of Newton Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Machinery A/c |
Dr. |
|
5,76,000 |
|
|
To B |
|
|
5,76,000 |
|
|
(Machinery purchased from B) |
|
|
|
|
|
|
|
|
|
|
|
B |
Dr. |
|
5,76,000 |
|
|
Discount on Issue of Debenture A/c |
Dr. |
|
24,000 |
|
|
To 9% Debenture A/c |
|
|
6,00,000 |
|
|
(Issued 6,000 debentures at 4% discount) |
|
|
|
|
|
|
|
|
|
Working Note:
Answer:
Case 1
Books of Reliance Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Machinery A/c |
Dr. |
|
1,35,000 |
|
|
To Vendor A/c |
|
|
1,35,000 |
|
|
(Machinery Purchases) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
1,35,000 |
|
|
To 9% Debenture A/c |
|
|
1,35,000 |
|
|
(Issued 1,350 debentures at par) |
|
|
|
|
|
|
|
|
|
Working Note:
Case 2
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Machinery A/c |
Dr. |
|
1,35,000 |
|
|
To Vendor A/c |
|
|
1,35,000 |
|
|
(Machinery purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
1,35,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
15,000 |
|
|
To 9% Debenture A/c |
|
|
1,50,000 |
|
|
(Issued 1,500 debentures at 10% discount) |
|
|
|
|
|
|
|
|
|
Working Note:
Page No 8.40:
Question 12:
Case 1
Books of Reliance Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Machinery A/c |
Dr. |
|
1,35,000 |
|
|
To Vendor A/c |
|
|
1,35,000 |
|
|
(Machinery Purchases) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
1,35,000 |
|
|
To 9% Debenture A/c |
|
|
1,35,000 |
|
|
(Issued 1,350 debentures at par) |
|
|
|
|
|
|
|
|
|
Working Note:
Case 2
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Machinery A/c |
Dr. |
|
1,35,000 |
|
|
To Vendor A/c |
|
|
1,35,000 |
|
|
(Machinery purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
1,35,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
15,000 |
|
|
To 9% Debenture A/c |
|
|
1,50,000 |
|
|
(Issued 1,500 debentures at 10% discount) |
|
|
|
|
|
|
|
|
|
Working Note:
Answer:
Books of Deepak Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Furniture A/c |
Dr. |
|
2,20,000 |
|
|
To Furniture Mart |
|
|
2,20,000 |
|
|
(Furniture purchased from Furniture Mart) |
|
|
|
|
|
|
|
|
|
|
|
Furniture Mart |
Dr. |
|
1,10,000 |
|
|
To Bills Payable A/c |
|
|
1,10,000 |
|
|
(Bill accepted from Furniture Mart against 50% payment) |
|
|
|
|
|
|
|
|
|
|
|
Furniture Mart |
Dr. |
|
1,10,000 |
|
|
To 9% Debenture A/c |
|
|
1,00,000 |
|
|
To Securities Premium A/c |
|
|
10,000 |
|
|
(Issued 1,000 9% Debentures of Rs 100 each at a premium of 10% to Furniture Mart) |
|
|
|
|
|
|
|
|
|
Working Note:
Page No 8.40:
Question 13:
Books of Deepak Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Furniture A/c |
Dr. |
|
2,20,000 |
|
|
To Furniture Mart |
|
|
2,20,000 |
|
|
(Furniture purchased from Furniture Mart) |
|
|
|
|
|
|
|
|
|
|
|
Furniture Mart |
Dr. |
|
1,10,000 |
|
|
To Bills Payable A/c |
|
|
1,10,000 |
|
|
(Bill accepted from Furniture Mart against 50% payment) |
|
|
|
|
|
|
|
|
|
|
|
Furniture Mart |
Dr. |
|
1,10,000 |
|
|
To 9% Debenture A/c |
|
|
1,00,000 |
|
|
To Securities Premium A/c |
|
|
10,000 |
|
|
(Issued 1,000 9% Debentures of Rs 100 each at a premium of 10% to Furniture Mart) |
|
|
|
|
|
|
|
|
|
Working Note:
Answer:
Books of Lotus Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Assets A/c |
Dr. |
|
2,50,000 |
|
|
Goodwill A/c (balancing figure) |
Dr. |
|
1,10,000 |
|
|
To Sundry Liabilities A/c |
|
|
30,000 |
|
|
To Goneby Company A/c |
|
|
3,30,000 |
|
|
(Business purchased of Goneby Company) |
|
|
|
|
|
|
|
|
|
|
|
Goneby Company A/c |
Dr. |
|
3,30,000 |
|
|
To Debenture A/c |
|
|
3,00,000 |
|
|
To Securities Premium A/c |
|
|
30,000 |
|
|
(Issued 3,000 debentures at 10% premium) |
|
|
|
|
|
|
|
|
|
Working Note:
Page No 8.41:
Question 14:
Books of Lotus Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Assets A/c |
Dr. |
|
2,50,000 |
|
|
Goodwill A/c (balancing figure) |
Dr. |
|
1,10,000 |
|
|
To Sundry Liabilities A/c |
|
|
30,000 |
|
|
To Goneby Company A/c |
|
|
3,30,000 |
|
|
(Business purchased of Goneby Company) |
|
|
|
|
|
|
|
|
|
|
|
Goneby Company A/c |
Dr. |
|
3,30,000 |
|
|
To Debenture A/c |
|
|
3,00,000 |
|
|
To Securities Premium A/c |
|
|
30,000 |
|
|
(Issued 3,000 debentures at 10% premium) |
|
|
|
|
|
|
|
|
|
Working Note:
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Assets A/c |
Dr. |
|
4,00,000 |
|
|
Goodwill A/c (balancing figure) |
Dr. |
|
30,000 |
|
|
To Liabilities A/c |
|
|
50,000 |
|
|
To Mohan Bros. A/c |
|
|
3,80,000 |
|
|
(Asset and liabilities purchased from Mohan Bros.) |
|
|
|
|
|
|
|
|
|
Case 1 When Debentures are issued at Par
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Mohan Bros. |
Dr. |
|
3,80,000 |
|
|
To Debenture A/c |
|
|
3,80,000 |
|
|
(Issued 3,800 debentures at par) |
|
|
|
|
|
|
|
|
|
Working Note:
Case 2 When Debentures are issued at 10% discount
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Mohan Bros. |
Dr. |
|
3,80,000 |
|
|
Discount on issue of Debenture A/c |
Dr. |
|
42,220 |
|
|
To Debenture A/c |
|
|
4,22,200 |
|
|
To Bank A/c |
|
|
20 |
|
|
(Issued 4,222 Debentures of Rs 100 each at 10% discount to Mohan Bros. and fraction of debentures is paid in cash)
|
|
|
|
|
|
|
|
|
|
Working Note:
Case 3 When Debentures are issued at 10% premium
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Mohan Bros. |
Dr. |
|
3,80,000 |
|
|
To Debenture A/c |
|
|
3,45,400 |
|
|
To Securities Premium A/c |
|
|
34,540 |
|
|
To Bank A/c |
|
|
60 |
|
|
(Issued 3,454 Debentures of Rs 100 each at 10% premium to Mohan Bros. and fraction of debentures is paid in cash) |
|
|
|
|
|
|
|
|
|
Working Note:
Page No 8.41:
Question 15:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Assets A/c |
Dr. |
|
4,00,000 |
|
|
Goodwill A/c (balancing figure) |
Dr. |
|
30,000 |
|
|
To Liabilities A/c |
|
|
50,000 |
|
|
To Mohan Bros. A/c |
|
|
3,80,000 |
|
|
(Asset and liabilities purchased from Mohan Bros.) |
|
|
|
|
|
|
|
|
|
Case 1 When Debentures are issued at Par
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Mohan Bros. |
Dr. |
|
3,80,000 |
|
|
To Debenture A/c |
|
|
3,80,000 |
|
|
(Issued 3,800 debentures at par) |
|
|
|
|
|
|
|
|
|
Working Note:
Case 2 When Debentures are issued at 10% discount
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Mohan Bros. |
Dr. |
|
3,80,000 |
|
|
Discount on issue of Debenture A/c |
Dr. |
|
42,220 |
|
|
To Debenture A/c |
|
|
4,22,200 |
|
|
To Bank A/c |
|
|
20 |
|
|
(Issued 4,222 Debentures of Rs 100 each at 10% discount to Mohan Bros. and fraction of debentures is paid in cash)
|
|
|
|
|
|
|
|
|
|
Working Note:
Case 3 When Debentures are issued at 10% premium
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Mohan Bros. |
Dr. |
|
3,80,000 |
|
|
To Debenture A/c |
|
|
3,45,400 |
|
|
To Securities Premium A/c |
|
|
34,540 |
|
|
To Bank A/c |
|
|
60 |
|
|
(Issued 3,454 Debentures of Rs 100 each at 10% premium to Mohan Bros. and fraction of debentures is paid in cash) |
|
|
|
|
|
|
|
|
|
Working Note:
Answer:
Books of R Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Assets A/c |
Dr. |
|
5,00,000 |
|
|
To Liabilities A/c |
|
|
2,00,000 |
|
|
To S Ltd. |
|
|
2,80,000 |
|
|
To Capital Reserve A/c (balancing figure) |
|
|
20,000 |
|
|
(Asset purchased and liabilities took over from S Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
S Ltd. |
Dr. |
|
2,80,000 |
|
|
To 9% Debentures A/c |
|
|
2,80,000 |
|
|
(Issued 2,800 9% Debentures of Rs 100 each) |
|
|
|
|
|
|
|
|
|
Working Note:
Page No 8.41:
Question 16:
Books of R Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Assets A/c |
Dr. |
|
5,00,000 |
|
|
To Liabilities A/c |
|
|
2,00,000 |
|
|
To S Ltd. |
|
|
2,80,000 |
|
|
To Capital Reserve A/c (balancing figure) |
|
|
20,000 |
|
|
(Asset purchased and liabilities took over from S Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
S Ltd. |
Dr. |
|
2,80,000 |
|
|
To 9% Debentures A/c |
|
|
2,80,000 |
|
|
(Issued 2,800 9% Debentures of Rs 100 each) |
|
|
|
|
|
|
|
|
|
Working Note:
Answer:
Books of Romi Ltd. |
|||||
Journal |
|||||
Date |
Particular |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Assets A/c |
Dr. |
|
20,00,000 |
|
|
To Creditors A/c |
|
|
2,00,000 |
|
|
To Kapil Enterprises |
|
|
18,00,000 |
|
|
(Asset purchased and Creditors took over from Kapil Enterprises) |
|
|
|
|
|
|
|
|
|
|
|
Kapil Enterprises A/c |
Dr. |
|
18,00,000 |
|
|
To 8% Debentures A/c |
|
|
14,40,000 |
|
|
To Securities Premium A/c |
|
|
3,60,000 |
|
|
(Issued 14,400 8% Debentures of Rs 100 each at a premium of 25% to Kapil Enterprises) |
|
|
|
|
|
|
|
|
|
Working Note:
Page No 8.41:
Question 17:
Books of Romi Ltd. |
|||||
Journal |
|||||
Date |
Particular |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Assets A/c |
Dr. |
|
20,00,000 |
|
|
To Creditors A/c |
|
|
2,00,000 |
|
|
To Kapil Enterprises |
|
|
18,00,000 |
|
|
(Asset purchased and Creditors took over from Kapil Enterprises) |
|
|
|
|
|
|
|
|
|
|
|
Kapil Enterprises A/c |
Dr. |
|
18,00,000 |
|
|
To 8% Debentures A/c |
|
|
14,40,000 |
|
|
To Securities Premium A/c |
|
|
3,60,000 |
|
|
(Issued 14,400 8% Debentures of Rs 100 each at a premium of 25% to Kapil Enterprises) |
|
|
|
|
|
|
|
|
|
Working Note:
Answer:
Books of Romi Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Assets A/c |
Dr. |
|
20,00,000 |
|
|
To Creditors A/c |
|
|
2,00,000 |
|
|
To Kapil Enterprises |
|
|
18,00,000 |
|
|
(Assets purchased and Creditors took over from Kapil Enterprises) |
|
|
|
|
|
|
|
|
|
|
|
Kapil Enterprises |
Dr. |
|
18,00,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
2,00,000 |
|
|
To 8% Debentures A/c |
|
|
20,00,000 |
|
|
(Issued 20,000 8% Debentures of Rs 100 each at discount of 10% to Kapil Enterprises) |
|
|
|
|
|
|
|
|
|
Working Note:
Page No 8.41:
Question 18:
Books of Romi Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Assets A/c |
Dr. |
|
20,00,000 |
|
|
To Creditors A/c |
|
|
2,00,000 |
|
|
To Kapil Enterprises |
|
|
18,00,000 |
|
|
(Assets purchased and Creditors took over from Kapil Enterprises) |
|
|
|
|
|
|
|
|
|
|
|
Kapil Enterprises |
Dr. |
|
18,00,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
2,00,000 |
|
|
To 8% Debentures A/c |
|
|
20,00,000 |
|
|
(Issued 20,000 8% Debentures of Rs 100 each at discount of 10% to Kapil Enterprises) |
|
|
|
|
|
|
|
|
|
Working Note:
Answer:
As per the Revised Schedule VI of the Companies Act, the Company’s Balance Sheet is as follows.
Best Barcode Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
2. Non-Current Liabilities |
|
|
a. Long-Term Borrowings |
1 |
5,00,000 |
3. Current Liabilities |
|
|
Total |
|
5,00,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
5,00,000 |
Total |
|
5,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
|
|
1 |
Long-Term Borrowings |
|
|
Loan (Secured by issue of 9% Debentures of Rs 6,00,000 as Collateral Security) |
5,00,000 |
|
|
|
2 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
5,00,000 |
|
|
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
To Loan A/c |
|
|
5,00,000 |
|
|
(Loan taken against issuing 9% Debentures as collateral Security) |
|
|
|
|
|
|
|
|
|
Alternative Method:
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
To Loan A/c |
|
|
5,00,000 |
|
|
(Loan taken against issuing 9% debentures as collateral Security) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Suspense A/c |
Dr. |
|
6,00,000 |
|
|
To 9% Debentures A/c |
|
|
6,00,000 |
|
|
(Issued 9% Debentures of Rs 6,00,000 as collateral security) |
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet
Best Barcode Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
2. Non-Current Liabilities |
|
|
a. Long-Term Borrowings |
1 |
5,00,000 |
3. Current Liabilities |
|
|
Total |
|
5,00,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
5,00,000 |
Total |
|
5,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
|
|
|
|
1 |
Long-Term Borrowings |
|
|
|
Secured: |
|
|
|
Loan (Secured by issue of 9% Debentures of Rs 6,00,000 as Collateral Security) |
5,00,000 |
|
|
9% Debentures (Issued as Collateral Security to Bank against loan) |
6,00,000 |
|
|
Less: Debenture Suspense Account |
6,00,000 |
- |
|
|
5,00,000 |
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
5,00,000 |
|
|
|
|
Page No 8.41:
Question 19:
As per the Revised Schedule VI of the Companies Act, the Company’s Balance Sheet is as follows.
Best Barcode Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
2. Non-Current Liabilities |
|
|
a. Long-Term Borrowings |
1 |
5,00,000 |
3. Current Liabilities |
|
|
Total |
|
5,00,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
5,00,000 |
Total |
|
5,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
|
|
1 |
Long-Term Borrowings |
|
|
Loan (Secured by issue of 9% Debentures of Rs 6,00,000 as Collateral Security) |
5,00,000 |
|
|
|
2 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
5,00,000 |
|
|
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
To Loan A/c |
|
|
5,00,000 |
|
|
(Loan taken against issuing 9% Debentures as collateral Security) |
|
|
|
|
|
|
|
|
|
Alternative Method:
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
5,00,000 |
|
|
To Loan A/c |
|
|
5,00,000 |
|
|
(Loan taken against issuing 9% debentures as collateral Security) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Suspense A/c |
Dr. |
|
6,00,000 |
|
|
To 9% Debentures A/c |
|
|
6,00,000 |
|
|
(Issued 9% Debentures of Rs 6,00,000 as collateral security) |
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet
Best Barcode Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
2. Non-Current Liabilities |
|
|
a. Long-Term Borrowings |
1 |
5,00,000 |
3. Current Liabilities |
|
|
Total |
|
5,00,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
5,00,000 |
Total |
|
5,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
|
|
|
|
1 |
Long-Term Borrowings |
|
|
|
Secured: |
|
|
|
Loan (Secured by issue of 9% Debentures of Rs 6,00,000 as Collateral Security) |
5,00,000 |
|
|
9% Debentures (Issued as Collateral Security to Bank against loan) |
6,00,000 |
|
|
Less: Debenture Suspense Account |
6,00,000 |
- |
|
|
5,00,000 |
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
5,00,000 |
|
|
|
|
Answer:
When Debentures Issued as Collateral Security are shown separately
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
4,00,000 |
|
|
To Loan from Mahavir Bank Ltd. |
|
|
4,00,000 |
|
|
(Loan taken against issuing 8% Debentures as collateral security) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Suspense A/c |
Dr. |
|
4,00,000 |
|
|
To 8% Debenture A/c |
|
|
4,00,000 |
|
|
(Debentures issued as collateral security) |
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet (When Debentures Issued as Collateral Security are shown separately)
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I Equity and Liabilities |
|
|
1.Shareholders’ Funds |
|
|
2.Non-Current Liabilities |
|
|
a. Long-Term Borrowings |
1 |
4,00,000 |
3.Current Liabilities |
|
|
Total |
|
4,00,000 |
|
|
|
II Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
4,00,000 |
Total |
|
4,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
|
|
|
|
1 |
Long-Term Borrowings |
|
|
|
Secured: |
|
|
|
Loan From Mahavir Bank (Secured by issue of Debentures of Rs 4,00,000) |
4,00,000 |
|
|
8% Debentures (Issued as Collateral Security to Bank against Loan) |
4,00,000 |
|
|
Less: Debenture Suspense Account |
4,00,000 |
- |
|
|
4,00,000 |
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
4,00,000 |
|
|
|
|
Alternative Method: When debentures Issued as Collateral Security are not shown separately
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
4,00,000 |
|
|
To Loan From Mahavir Bank Ltd. |
|
|
4,00,000 |
|
|
(Loan taken from Mahavir Bank secured by issuing Debentures as collateral security) |
|
|
|
|
|
|
|
|
|
(When Debentures Issued as Collateral Security are not shown separately)
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
2. Non-Current Liabilities |
|
|
a. Long-Term Borrowings |
1 |
4,00,000 |
3. Current Liabilities |
|
|
Total |
|
4,00,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
4,00,000 |
Total |
|
4,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
|
|
1 |
Long-Term Borrowings |
|
|
Secured: |
|
|
Loan From Mahavir Bank (Secured by issue of 8% Debentures of Rs 4,00,000 as Collateral Security) |
4,00,000 |
|
|
|
2 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
4,00,000 |
|
|
|
Page No 8.41:
Question 20:
When Debentures Issued as Collateral Security are shown separately
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
4,00,000 |
|
|
To Loan from Mahavir Bank Ltd. |
|
|
4,00,000 |
|
|
(Loan taken against issuing 8% Debentures as collateral security) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Suspense A/c |
Dr. |
|
4,00,000 |
|
|
To 8% Debenture A/c |
|
|
4,00,000 |
|
|
(Debentures issued as collateral security) |
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet (When Debentures Issued as Collateral Security are shown separately)
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I Equity and Liabilities |
|
|
1.Shareholders’ Funds |
|
|
2.Non-Current Liabilities |
|
|
a. Long-Term Borrowings |
1 |
4,00,000 |
3.Current Liabilities |
|
|
Total |
|
4,00,000 |
|
|
|
II Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
4,00,000 |
Total |
|
4,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
|
|
|
|
1 |
Long-Term Borrowings |
|
|
|
Secured: |
|
|
|
Loan From Mahavir Bank (Secured by issue of Debentures of Rs 4,00,000) |
4,00,000 |
|
|
8% Debentures (Issued as Collateral Security to Bank against Loan) |
4,00,000 |
|
|
Less: Debenture Suspense Account |
4,00,000 |
- |
|
|
4,00,000 |
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
4,00,000 |
|
|
|
|
Alternative Method: When debentures Issued as Collateral Security are not shown separately
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
4,00,000 |
|
|
To Loan From Mahavir Bank Ltd. |
|
|
4,00,000 |
|
|
(Loan taken from Mahavir Bank secured by issuing Debentures as collateral security) |
|
|
|
|
|
|
|
|
|
(When Debentures Issued as Collateral Security are not shown separately)
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
2. Non-Current Liabilities |
|
|
a. Long-Term Borrowings |
1 |
4,00,000 |
3. Current Liabilities |
|
|
Total |
|
4,00,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
2. Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
4,00,000 |
Total |
|
4,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
|
|
1 |
Long-Term Borrowings |
|
|
Secured: |
|
|
Loan From Mahavir Bank (Secured by issue of 8% Debentures of Rs 4,00,000 as Collateral Security) |
4,00,000 |
|
|
|
2 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
4,00,000 |
|
|
|
Answer:
When Debentures Issued as Collateral Security is shown separately
X Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
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 |
|
|
|
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 |
Amount (Rs) |
|
|
|
|
|
1 |
Long-Term Borrowings |
|
|
|
Secured: |
|
|
|
Loan From IDBI(Secured by issue of Debentures of Rs 4,00,000) |
3,00,000 |
|
|
9 % Debentures (Issued as Collateral Security against loan) |
4,00,000 |
|
|
Less: Debenture Suspense Account |
4,00,000 |
- |
|
|
3,00,000 |
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
3,00,000 |
|
|
|
|
Alternative Method: When Debentures Issued as Collateral Security are not shown separately
X Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
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 |
|
|
|
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 |
Amount (Rs) |
|
|
|
1 |
Long-Term Borrowings |
|
|
Secured: |
|
|
Loan From IDBI (Secured by issue of 9% Debentures of Rs 4,00,000 as Collateral Security) |
3,00,000 |
|
|
|
2 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
3,00,000 |
|
|
|
Page No 8.41:
Question 21:
When Debentures Issued as Collateral Security is shown separately
X Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
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 |
|
|
|
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 |
Amount (Rs) |
|
|
|
|
|
1 |
Long-Term Borrowings |
|
|
|
Secured: |
|
|
|
Loan From IDBI(Secured by issue of Debentures of Rs 4,00,000) |
3,00,000 |
|
|
9 % Debentures (Issued as Collateral Security against loan) |
4,00,000 |
|
|
Less: Debenture Suspense Account |
4,00,000 |
- |
|
|
3,00,000 |
|
|
|
|
|
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
3,00,000 |
|
|
|
|
Alternative Method: When Debentures Issued as Collateral Security are not shown separately
X Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
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 |
|
|
|
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 |
Amount (Rs) |
|
|
|
1 |
Long-Term Borrowings |
|
|
Secured: |
|
|
Loan From IDBI (Secured by issue of 9% Debentures of Rs 4,00,000 as Collateral Security) |
3,00,000 |
|
|
|
2 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
3,00,000 |
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(a) |
Bank A/c |
Dr. |
|
95 |
|
|
To Debenture Application A/c |
|
|
95 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
95 |
|
|
Discount on Issue of Debentures A/c |
|
|
5 |
|
|
To Debenture A/c |
|
|
100 |
|
|
(Debenture of Rs 100 each issued at Rs 95 with the term repayable at par) |
|
|
|
|
|
|
|
|
|
|
(b) |
Bank A/c |
Dr. |
|
95 |
|
|
To Debenture Application A/c |
|
|
95 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
95 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
5 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
5 |
|
|
To Debentures A/c |
|
|
100 |
|
|
To Premium on Redemption A/c |
|
|
5 |
|
|
(Debenture of Rs 100 each issued of Rs 95 with the term repayable at Rs 105) |
|
|
|
|
|
|
|
|
|
|
(c) |
Bank A/c |
Dr. |
|
100 |
|
|
To Debenture Application A/c |
|
|
100 |
|
|
(Debenture Application received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
100 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
5 |
|
|
To Debentures A/c |
|
|
100 |
|
|
To Premium on Redemption A/c |
|
|
5 |
|
|
(Debenture of Rs 100 each issued at par with the term repayable at Rs 105) |
|
|
|
|
|
|
|
|
|
Page No 8.41:
Question 22:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(a) |
Bank A/c |
Dr. |
|
95 |
|
|
To Debenture Application A/c |
|
|
95 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
95 |
|
|
Discount on Issue of Debentures A/c |
|
|
5 |
|
|
To Debenture A/c |
|
|
100 |
|
|
(Debenture of Rs 100 each issued at Rs 95 with the term repayable at par) |
|
|
|
|
|
|
|
|
|
|
(b) |
Bank A/c |
Dr. |
|
95 |
|
|
To Debenture Application A/c |
|
|
95 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
95 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
5 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
5 |
|
|
To Debentures A/c |
|
|
100 |
|
|
To Premium on Redemption A/c |
|
|
5 |
|
|
(Debenture of Rs 100 each issued of Rs 95 with the term repayable at Rs 105) |
|
|
|
|
|
|
|
|
|
|
(c) |
Bank A/c |
Dr. |
|
100 |
|
|
To Debenture Application A/c |
|
|
100 |
|
|
(Debenture Application received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
100 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
5 |
|
|
To Debentures A/c |
|
|
100 |
|
|
To Premium on Redemption A/c |
|
|
5 |
|
|
(Debenture of Rs 100 each issued at par with the term repayable at Rs 105) |
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(a) |
Bank A/c |
Dr. |
|
42,000 |
|
|
To 12% Debenture Application A/c |
|
|
42,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
12% Debenture Application A/c |
Dr. |
|
42,000 |
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
To Securities Premium A/c |
|
|
2,000 |
|
|
(Debenture application money transferred to 12% Debentures account and securities premium account) |
|
|
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(b) |
Bank A/c |
Dr. |
|
36,000 |
|
|
To 12% Debenture Application A/c |
|
|
36,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
12% Debenture Application A/c |
Dr. |
|
36,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
4,000 |
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
(Debentures of Rs 40,000 issued at 10% discount) |
|
|
|
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(c) |
Bank A/c |
Dr. |
|
40,000 |
|
|
To 12% Debenture Application A/c |
|
|
40,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
12% Debenture Application A/c |
Dr. |
|
40,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
4,000 |
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
To Premium on Redemption A/c |
|
|
4,000 |
|
|
(Debentures of Rs 40,000 issued at par with the term repayable at 10% premium) |
|
|
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(d) |
Bank A/c |
Dr. |
|
38,000 |
|
|
To 12% Debenture Application A/c |
|
|
38,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
38,000 |
|
|
Discount on Issue of Debenture A/c |
Dr. |
|
2,000 |
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
2,000 |
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
To Premium on Redemption A/c |
|
|
2,000 |
|
|
(Debentures of Rs 40,000 issued at 5% discount with the term repayable at 5% premium) |
|
|
|
|
|
|
|
|
|
Page No 8.42:
Question 23:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(a) |
Bank A/c |
Dr. |
|
42,000 |
|
|
To 12% Debenture Application A/c |
|
|
42,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
12% Debenture Application A/c |
Dr. |
|
42,000 |
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
To Securities Premium A/c |
|
|
2,000 |
|
|
(Debenture application money transferred to 12% Debentures account and securities premium account) |
|
|
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(b) |
Bank A/c |
Dr. |
|
36,000 |
|
|
To 12% Debenture Application A/c |
|
|
36,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
12% Debenture Application A/c |
Dr. |
|
36,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
4,000 |
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
(Debentures of Rs 40,000 issued at 10% discount) |
|
|
|
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(c) |
Bank A/c |
Dr. |
|
40,000 |
|
|
To 12% Debenture Application A/c |
|
|
40,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
12% Debenture Application A/c |
Dr. |
|
40,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
4,000 |
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
To Premium on Redemption A/c |
|
|
4,000 |
|
|
(Debentures of Rs 40,000 issued at par with the term repayable at 10% premium) |
|
|
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(d) |
Bank A/c |
Dr. |
|
38,000 |
|
|
To 12% Debenture Application A/c |
|
|
38,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
38,000 |
|
|
Discount on Issue of Debenture A/c |
Dr. |
|
2,000 |
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
2,000 |
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
|
To Premium on Redemption A/c |
|
|
2,000 |
|
|
(Debentures of Rs 40,000 issued at 5% discount with the term repayable at 5% premium) |
|
|
|
|
|
|
|
|
|
Answer:
Books of Footfall Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
9,00,000 |
|
|
To Debenture Application A/c |
|
|
9,00,000 |
|
|
(Debenture application money received for 10,000 debentures at Rs 90 each) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
9,00,000 |
|
|
Discount on Issue of Debenture A/c |
Dr. |
|
1,00,000 |
|
|
Loss on issue of Debentures A/c |
Dr. |
|
50,000 |
|
|
To Debentures A/c |
|
|
10,00,000 |
|
|
To Premium on Redemption A/c |
|
|
50,000 |
|
|
(10,000 Debentures of Rs 100 each issued at 10% discount with the term repayable at 5% redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentures A/c |
Dr. |
|
10,00,000 |
|
|
Premium on Redemption A/c |
Dr. |
|
50,000 |
|
|
To Debentureholders’ A/c |
|
|
10,50,000 |
|
|
(Debentures due for redemption along with premium on redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
10,50,000 |
|
|
To Bank A/c |
|
|
10,50,000 |
|
|
(Amount due for redemption paid to debenture holders) |
|
|
|
|
|
|
|
|
|
Page No 8.42:
Question 24:
Books of Footfall Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
9,00,000 |
|
|
To Debenture Application A/c |
|
|
9,00,000 |
|
|
(Debenture application money received for 10,000 debentures at Rs 90 each) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
9,00,000 |
|
|
Discount on Issue of Debenture A/c |
Dr. |
|
1,00,000 |
|
|
Loss on issue of Debentures A/c |
Dr. |
|
50,000 |
|
|
To Debentures A/c |
|
|
10,00,000 |
|
|
To Premium on Redemption A/c |
|
|
50,000 |
|
|
(10,000 Debentures of Rs 100 each issued at 10% discount with the term repayable at 5% redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentures A/c |
Dr. |
|
10,00,000 |
|
|
Premium on Redemption A/c |
Dr. |
|
50,000 |
|
|
To Debentureholders’ A/c |
|
|
10,50,000 |
|
|
(Debentures due for redemption along with premium on redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
10,50,000 |
|
|
To Bank A/c |
|
|
10,50,000 |
|
|
(Amount due for redemption paid to debenture holders) |
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
9,00,000 |
|
|
To Debenture Application A/c |
|
|
9,00,000 |
|
|
(Debenture application money received for 10,000 debentures at Rs 90 each) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
9,00,000 |
|
|
Discount on Issue of Debenture A/c |
Dr. |
|
1,00,000 |
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
1,00,000 |
|
|
To Debentures A/c |
|
|
10,00,000 |
|
|
To Premium on Redemption A/c |
|
|
1,00,000 |
|
|
(10,000 Debenture of Rs 100 each issued at 10% discount with the term repayable at a premium of 10%) |
|
|
|
|
|
|
|
|
|
|
|
Debentures A/c |
Dr. |
|
10,00,000 |
|
|
Premium on Redemption A/c |
Dr. |
|
1,00,000 |
|
|
To Debentureholders’ A/c |
|
|
11,00,000 |
|
|
(Amount of Debentures due for redemption along with premium on redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
11,00,000 |
|
|
To Bank A/c |
|
|
11,00,000 |
|
|
(Amount due for redemption paid to debenture holders) |
|
|
|
|
|
|
|
|
|
Page No 8.42:
Question 25:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
9,00,000 |
|
|
To Debenture Application A/c |
|
|
9,00,000 |
|
|
(Debenture application money received for 10,000 debentures at Rs 90 each) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
9,00,000 |
|
|
Discount on Issue of Debenture A/c |
Dr. |
|
1,00,000 |
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
1,00,000 |
|
|
To Debentures A/c |
|
|
10,00,000 |
|
|
To Premium on Redemption A/c |
|
|
1,00,000 |
|
|
(10,000 Debenture of Rs 100 each issued at 10% discount with the term repayable at a premium of 10%) |
|
|
|
|
|
|
|
|
|
|
|
Debentures A/c |
Dr. |
|
10,00,000 |
|
|
Premium on Redemption A/c |
Dr. |
|
1,00,000 |
|
|
To Debentureholders’ A/c |
|
|
11,00,000 |
|
|
(Amount of Debentures due for redemption along with premium on redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
11,00,000 |
|
|
To Bank A/c |
|
|
11,00,000 |
|
|
(Amount due for redemption paid to debenture holders) |
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
95,000 |
|
|
To 9% Debenture Application A/c |
|
|
95,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
9% Debenture Application A/c |
Dr. |
|
95,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
5,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
10,000 |
|
|
To 9% Debentures A/c |
|
|
1,00,000 |
|
|
To Premium on Redemption A/c |
|
|
10,000 |
|
|
(9% Debentures issued at 5% discount with term repayable at 10% premium) |
|
|
|
|
|
|
|
|
|
Page No 8.42:
Question 26:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
95,000 |
|
|
To 9% Debenture Application A/c |
|
|
95,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
9% Debenture Application A/c |
Dr. |
|
95,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
5,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
10,000 |
|
|
To 9% Debentures A/c |
|
|
1,00,000 |
|
|
To Premium on Redemption A/c |
|
|
10,000 |
|
|
(9% Debentures issued at 5% discount with term repayable at 10% premium) |
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(a) |
Bank A/c |
Dr. |
|
4,32,000 |
|
|
To Debenture Application and Allotment A/c |
|
|
|
4,32,000 |
|
(Application money received on 4,000 9% Debentures) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application and Allotment A/c |
Dr. |
|
4,32,000 |
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
40,000 |
|
|
To 9% Debentures A/c |
|
|
|
4,00,000 |
|
To Securities Premium Reserve A/c |
|
|
|
32,000 |
|
To Premium on Redemption of debentures A/c |
|
|
|
40,000 |
|
(4,000; 9% Debentures issued at a premium of Rs 8 and redeemable at premium of 10%) |
|
|
|
|
|
|
|
|
|
|
(b) |
Bank A/c |
Dr. |
|
6,00,000 |
|
|
To Debenture Application and Allotment A/c |
|
|
|
6,00,000 |
|
(Application money received on 6,000 9% Debentures) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application and Allotment A/c |
Dr. |
|
6,00,000 |
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
60,000 |
|
|
To 9% Debentures A/c |
|
|
|
6,00,000 |
|
To Premium on Redemption of Debentures A/c |
|
|
|
60,000 |
|
(6,000; 9% Debentures issued at par and redeemable at premium of 10%) |
|
|
|
|
|
|
|
|
|
|
(c) |
Bank A/c |
Dr. |
|
10,50,000 |
|
|
To Debenture Application and Allotment A/c |
|
|
|
10,50,000 |
|
(Application money received on 10,000 9%Debentures) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application and Allotment A/c |
Dr. |
|
10,50,000 |
|
|
To 9% Debentures A/c |
|
|
|
10,00,000 |
|
To Securities Premium Reserve A/c |
|
|
|
50,000 |
|
(1,000; 9% Debentures issued at a premium of Rs 5) |
|
|
|
|
|
|
|
|
|
Page No 8.42:
Question 27:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(a) |
Bank A/c |
Dr. |
|
4,32,000 |
|
|
To Debenture Application and Allotment A/c |
|
|
|
4,32,000 |
|
(Application money received on 4,000 9% Debentures) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application and Allotment A/c |
Dr. |
|
4,32,000 |
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
40,000 |
|
|
To 9% Debentures A/c |
|
|
|
4,00,000 |
|
To Securities Premium Reserve A/c |
|
|
|
32,000 |
|
To Premium on Redemption of debentures A/c |
|
|
|
40,000 |
|
(4,000; 9% Debentures issued at a premium of Rs 8 and redeemable at premium of 10%) |
|
|
|
|
|
|
|
|
|
|
(b) |
Bank A/c |
Dr. |
|
6,00,000 |
|
|
To Debenture Application and Allotment A/c |
|
|
|
6,00,000 |
|
(Application money received on 6,000 9% Debentures) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application and Allotment A/c |
Dr. |
|
6,00,000 |
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
60,000 |
|
|
To 9% Debentures A/c |
|
|
|
6,00,000 |
|
To Premium on Redemption of Debentures A/c |
|
|
|
60,000 |
|
(6,000; 9% Debentures issued at par and redeemable at premium of 10%) |
|
|
|
|
|
|
|
|
|
|
(c) |
Bank A/c |
Dr. |
|
10,50,000 |
|
|
To Debenture Application and Allotment A/c |
|
|
|
10,50,000 |
|
(Application money received on 10,000 9%Debentures) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application and Allotment A/c |
Dr. |
|
10,50,000 |
|
|
To 9% Debentures A/c |
|
|
|
10,00,000 |
|
To Securities Premium Reserve A/c |
|
|
|
50,000 |
|
(1,000; 9% Debentures issued at a premium of Rs 5) |
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(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%) |
|
|
|
|
|
|
|
|
|
Page No 8.42:
Question 28:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(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%) |
|
|
|
|
|
|
|
|
|
Answer:
(a)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
42,000 |
|
|
To Debenture Application A/c |
|
|
|
42,000 |
|
(400 debentures issued at Rs 100 at a premium of 5%) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
42,000 |
|
|
To 12% Debenture A/c |
|
|
|
40,000 |
|
To Securities Premium A/c |
|
|
|
2,000 |
|
(400 debentures issued at a premium of 5% and redeemable at par) |
|
|
|
|
|
|
|
|
|
|
(b)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
73,500 |
|
|
To Debenture Application A/c |
|
|
|
73,500 |
|
(700 debentures issued at Rs 100 at a premium of 5%) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
73,500 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
7,000 |
|
|
To 12% Debenture A/c |
|
|
|
70,000 |
|
To Securities Premium A/c |
|
|
|
3,500 |
|
To Premium on Redemption A/c |
|
|
|
7,000 |
|
(70,000 debentures issued at a premium of 5% and redeemable at Rs 110) |
|
|
|
|
|
|
|
|
|
|
Page No 8.42:
Question 29:
(a)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
42,000 |
|
|
To Debenture Application A/c |
|
|
|
42,000 |
|
(400 debentures issued at Rs 100 at a premium of 5%) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
42,000 |
|
|
To 12% Debenture A/c |
|
|
|
40,000 |
|
To Securities Premium A/c |
|
|
|
2,000 |
|
(400 debentures issued at a premium of 5% and redeemable at par) |
|
|
|
|
|
|
|
|
|
|
(b)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
73,500 |
|
|
To Debenture Application A/c |
|
|
|
73,500 |
|
(700 debentures issued at Rs 100 at a premium of 5%) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
73,500 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
7,000 |
|
|
To 12% Debenture A/c |
|
|
|
70,000 |
|
To Securities Premium A/c |
|
|
|
3,500 |
|
To Premium on Redemption A/c |
|
|
|
7,000 |
|
(70,000 debentures issued at a premium of 5% and redeemable at Rs 110) |
|
|
|
|
|
|
|
|
|
|
Answer:
(a)
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Bank A/c |
Dr. |
|
36,000 |
|
|
|
To Debenture Application A/c |
|
|
|
36,000 |
|
|
(400 debentures issued at Rs 100 at discount of 10%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
36,000 |
|
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
4,000 |
|
|
|
To 15% Debenture A/c |
|
|
|
40,000 |
|
|
(400 debentures issued at discount and redeemable at a par ) |
|
|
|
|
|
|
|
|
|
|
|
(b)
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Bank A/c |
Dr. |
|
88,000 |
|
|
|
To Debenture Application A/c |
|
|
|
88,000 |
|
|
(800 debentures issued at Rs 100 at a discount of 10%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
88,000 |
|
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
8,000 |
|
|
|
To 15% Debenture A/c |
|
|
|
80,000 |
|
|
To Premium on Redemption A/c |
|
|
|
8,000 |
|
|
To Securities Premium A/c |
|
|
|
8,000 |
|
|
(800 debentures issued at a premium of 10% and redeemable at a premium of 10%) |
|
|
|
|
|
|
|
|
|
|
|
Page No 8.42:
Question 30:
(a)
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Bank A/c |
Dr. |
|
36,000 |
|
|
|
To Debenture Application A/c |
|
|
|
36,000 |
|
|
(400 debentures issued at Rs 100 at discount of 10%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
36,000 |
|
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
4,000 |
|
|
|
To 15% Debenture A/c |
|
|
|
40,000 |
|
|
(400 debentures issued at discount and redeemable at a par ) |
|
|
|
|
|
|
|
|
|
|
|
(b)
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Bank A/c |
Dr. |
|
88,000 |
|
|
|
To Debenture Application A/c |
|
|
|
88,000 |
|
|
(800 debentures issued at Rs 100 at a discount of 10%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
88,000 |
|
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
8,000 |
|
|
|
To 15% Debenture A/c |
|
|
|
80,000 |
|
|
To Premium on Redemption A/c |
|
|
|
8,000 |
|
|
To Securities Premium A/c |
|
|
|
8,000 |
|
|
(800 debentures issued at a premium of 10% and redeemable at a premium of 10%) |
|
|
|
|
|
|
|
|
|
|
|
Answer:
Books of XYZ Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2005 |
|
|
|
|
|
April 01 |
Bank A/c |
Dr. |
|
45,000 |
|
|
To 10% Debenture Application A/c |
|
|
|
45,000 |
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
April 01 |
10% Debenture Application A/c |
Dr. |
|
45,000 |
|
|
Loss on issue of Debentures A/c |
Dr. |
|
10,000 |
|
|
To 10% Debenture A/c |
|
|
|
50,000 |
|
To Premium on Redemption A/c |
|
|
|
5,000 |
|
(500 Debentures of Rs 100 each issued at 10% discount with the term repayable at a premium of 10%) |
|
|
|
|
2011 |
|
|
|
|
|
Sept. 30 |
Interest on Debentures A/c |
Dr. |
|
2,500 |
|
|
To Debentureholdersâ A/c |
|
|
|
2,500 |
|
(Interest due on 10% Debentures) |
|
|
|
|
|
|
|
|
|
|
Sept. 30 |
Debentureholdersâ A/c |
Dr. |
|
2,500 |
|
|
To Bank A/c |
|
|
|
2,500 |
|
(Interest on debentures paid to debenture holders) |
|
|
|
|
2012 |
|
|
|
|
|
March 31 |
Interest on Debentures A/c |
Dr. |
|
2,500 |
|
|
To Debentureholdersâ A/c |
|
|
|
2,500 |
|
(Interest due on 10% Debentures) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Debentureholdersâ A/c |
Dr. |
|
2,500 |
|
|
To Bank A/c |
|
|
|
2,500 |
|
(Debenture Interest paid to Debenture holders) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Profit and Loss A/c |
Dr. |
|
5,000 |
|
|
To Interest on Debentures A/c |
|
|
|
5,000 |
|
(Interest on debentures transferred to Profit and Loss Account) |
|
|
|
|
|
|
|
|
|
|
Working Note:
Interest on Debentures (for half year) =
Page No 8.42:
Question 31:
Books of XYZ Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2005 |
|
|
|
|
|
April 01 |
Bank A/c |
Dr. |
|
45,000 |
|
|
To 10% Debenture Application A/c |
|
|
|
45,000 |
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
April 01 |
10% Debenture Application A/c |
Dr. |
|
45,000 |
|
|
Loss on issue of Debentures A/c |
Dr. |
|
10,000 |
|
|
To 10% Debenture A/c |
|
|
|
50,000 |
|
To Premium on Redemption A/c |
|
|
|
5,000 |
|
(500 Debentures of Rs 100 each issued at 10% discount with the term repayable at a premium of 10%) |
|
|
|
|
2011 |
|
|
|
|
|
Sept. 30 |
Interest on Debentures A/c |
Dr. |
|
2,500 |
|
|
To Debentureholdersâ A/c |
|
|
|
2,500 |
|
(Interest due on 10% Debentures) |
|
|
|
|
|
|
|
|
|
|
Sept. 30 |
Debentureholdersâ A/c |
Dr. |
|
2,500 |
|
|
To Bank A/c |
|
|
|
2,500 |
|
(Interest on debentures paid to debenture holders) |
|
|
|
|
2012 |
|
|
|
|
|
March 31 |
Interest on Debentures A/c |
Dr. |
|
2,500 |
|
|
To Debentureholdersâ A/c |
|
|
|
2,500 |
|
(Interest due on 10% Debentures) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Debentureholdersâ A/c |
Dr. |
|
2,500 |
|
|
To Bank A/c |
|
|
|
2,500 |
|
(Debenture Interest paid to Debenture holders) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Profit and Loss A/c |
Dr. |
|
5,000 |
|
|
To Interest on Debentures A/c |
|
|
|
5,000 |
|
(Interest on debentures transferred to Profit and Loss Account) |
|
|
|
|
|
|
|
|
|
|
Working Note:
Interest on Debentures (for half year) =
Answer:
Case (i) Debentures Issued at Premium of 10%
Journal |
|||||
|
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
5,50,000 |
|
|
To 9% Debenture Application A/c |
|
|
5,50,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
9% Debenture Application A/c |
Dr. |
|
5,50,000 |
|
|
To 9% Debentures A/c |
|
|
5,00,000 |
|
|
To Securities Premium A/c |
|
|
50,000 |
|
|
(5,000 9% Debentures of Rs 100 each issued at 10% premium) |
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet
XYZ Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Reserves and Surplus |
1 |
50,000 |
2. Non-Current Liabilities |
|
|
a. Long Term Borrowings |
2 |
5,00,000 |
3. Current Liabilities |
|
|
Total |
|
5,50,000 |
|
|
|
II. Assets |
|
|
1.Non-Current Assets |
|
|
2.Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
5,50,000 |
Total |
|
5,50,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
1 |
Reserves and Surplus |
|
|
Securities Premium |
50,000 |
|
||
2 |
Long Term Borrowings |
|
9% Debentures (Secured) |
5,00,000 |
|
|
||
3 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
5,50,000 |
|
|
|
Case (ii) Debentures Issued as Collateral Security to bank against a loan of Rs 4,00,000
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr |
|
4,00,000 |
|
|
To Loan A/c |
|
|
4,00,000 |
|
|
(Loan taken and Debentures issued as collateral security) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Suspense A/c |
Dr. |
|
5,00,000 |
|
|
To 9% Debentures A/c |
|
|
5,00,000 |
|
|
(Debenture issued as Collateral Security) |
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet
XYZ Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
2. Non-Current Liabilities |
|
|
a. Long Term Borrowings |
1 |
4,00,000 |
3.Current Liabilities |
|
|
Total |
|
4,00,000 |
|
|
|
II. Assets |
|
|
1.Non-Current Assets |
|
|
2.Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
4,00,000 |
Total |
|
4,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
1 |
Long Term Borrowings |
|
|
Loan from Bank (Secured by issue of 9% Debentures of Rs 5,00,000) |
4,00,000 |
||
9% Debentures (Secured) (Issued as Collateral Security) |
5,00,000 |
|
|
Less: Debenture Suspense A/c |
(5,00,000) |
- |
|
|
|||
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
4,00,000 |
|
|
|
|
Case (iii) Debentures Issued at Discount of 5%
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
4,75,000 |
|
|
To 9% Debenture Application A/c |
|
|
4,75,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
9% Debenture Application A/c |
Dr. |
|
4,75,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
25,000 |
|
|
To 9% Debentures A/c |
|
|
5,00,000 |
|
|
(5,000 9% Debentures of Rs 100 each issued at a discount of 5%) |
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet
XYZ Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
2. Non-Current Liabilities |
|
|
a. Long Term Borrowings |
1 |
5,00,000 |
3. Current Liabilities |
|
|
Total |
|
5,00,000 |
|
|
|
II. Assets |
|
|
1.Non-Current Assets |
|
|
a. Other Non-Current Assets |
2 |
25,000 |
2.Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
4,75,000 |
Total |
|
5,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
1 |
Long Term Borrowings |
|
|
9% Debentures (Secured) |
5,00,000 |
|
||
2 |
Other Non-Current Assets |
|
Discount on Issue of Debentures |
25,000 |
|
|
||
3 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
4,75,000 |
|
|
|
Case (iv) Debentures are issued to a supplier of machinery costing Rs 4,50,000
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Machinery A/c |
Dr. |
|
4,50,000 |
|
|
To Vendor |
|
|
4,50,000 |
|
|
(Machinery purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
4,50,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
50,000 |
|
|
To 9% Debentures |
|
|
5,00,000 |
|
|
(Issued 5,000 9% debentures to Vendor of Machinery) |
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet
XYZ Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
2. Non-Current Liabilities |
|
|
a. Long Term Borrowings |
1 |
5,00,000 |
3. Current Liabilities |
|
|
Total |
|
5,00,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
a. Fixed Assets |
|
|
i. Tangible Assets |
2 |
4,50,000 |
b. Other Non-Current Assets |
3 |
50,000 |
2. Current Assets |
|
|
Total |
|
5,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
1 |
Long Term Borrowings |
|
|
9% Debentures (Secured) |
5,00,000 |
|
||
2 |
Tangible Assets |
|
Machinery |
4,50,000 |
|
|
||
3 |
Other Non-Current Assets |
|
|
Discount on Issue of Debentures |
50,000 |
|
|
|
Page No 8.42:
Question 32:
Case (i) Debentures Issued at Premium of 10%
Journal |
|||||
|
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
5,50,000 |
|
|
To 9% Debenture Application A/c |
|
|
5,50,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
9% Debenture Application A/c |
Dr. |
|
5,50,000 |
|
|
To 9% Debentures A/c |
|
|
5,00,000 |
|
|
To Securities Premium A/c |
|
|
50,000 |
|
|
(5,000 9% Debentures of Rs 100 each issued at 10% premium) |
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet
XYZ Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Reserves and Surplus |
1 |
50,000 |
2. Non-Current Liabilities |
|
|
a. Long Term Borrowings |
2 |
5,00,000 |
3. Current Liabilities |
|
|
Total |
|
5,50,000 |
|
|
|
II. Assets |
|
|
1.Non-Current Assets |
|
|
2.Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
5,50,000 |
Total |
|
5,50,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
1 |
Reserves and Surplus |
|
|
Securities Premium |
50,000 |
|
||
2 |
Long Term Borrowings |
|
9% Debentures (Secured) |
5,00,000 |
|
|
||
3 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
5,50,000 |
|
|
|
Case (ii) Debentures Issued as Collateral Security to bank against a loan of Rs 4,00,000
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr |
|
4,00,000 |
|
|
To Loan A/c |
|
|
4,00,000 |
|
|
(Loan taken and Debentures issued as collateral security) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Suspense A/c |
Dr. |
|
5,00,000 |
|
|
To 9% Debentures A/c |
|
|
5,00,000 |
|
|
(Debenture issued as Collateral Security) |
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet
XYZ Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
2. Non-Current Liabilities |
|
|
a. Long Term Borrowings |
1 |
4,00,000 |
3.Current Liabilities |
|
|
Total |
|
4,00,000 |
|
|
|
II. Assets |
|
|
1.Non-Current Assets |
|
|
2.Current Assets |
|
|
a. Cash and Cash Equivalents |
2 |
4,00,000 |
Total |
|
4,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
|
1 |
Long Term Borrowings |
|
|
Loan from Bank (Secured by issue of 9% Debentures of Rs 5,00,000) |
4,00,000 |
||
9% Debentures (Secured) (Issued as Collateral Security) |
5,00,000 |
|
|
Less: Debenture Suspense A/c |
(5,00,000) |
- |
|
|
|||
2 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
4,00,000 |
|
|
|
|
Case (iii) Debentures Issued at Discount of 5%
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
4,75,000 |
|
|
To 9% Debenture Application A/c |
|
|
4,75,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
9% Debenture Application A/c |
Dr. |
|
4,75,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
25,000 |
|
|
To 9% Debentures A/c |
|
|
5,00,000 |
|
|
(5,000 9% Debentures of Rs 100 each issued at a discount of 5%) |
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet
XYZ Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
2. Non-Current Liabilities |
|
|
a. Long Term Borrowings |
1 |
5,00,000 |
3. Current Liabilities |
|
|
Total |
|
5,00,000 |
|
|
|
II. Assets |
|
|
1.Non-Current Assets |
|
|
a. Other Non-Current Assets |
2 |
25,000 |
2.Current Assets |
|
|
a. Cash and Cash Equivalents |
3 |
4,75,000 |
Total |
|
5,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
1 |
Long Term Borrowings |
|
|
9% Debentures (Secured) |
5,00,000 |
|
||
2 |
Other Non-Current Assets |
|
Discount on Issue of Debentures |
25,000 |
|
|
||
3 |
Cash and Cash Equivalents |
|
|
Cash at Bank |
4,75,000 |
|
|
|
Case (iv) Debentures are issued to a supplier of machinery costing Rs 4,50,000
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Machinery A/c |
Dr. |
|
4,50,000 |
|
|
To Vendor |
|
|
4,50,000 |
|
|
(Machinery purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
4,50,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
50,000 |
|
|
To 9% Debentures |
|
|
5,00,000 |
|
|
(Issued 5,000 9% debentures to Vendor of Machinery) |
|
|
|
|
|
|
|
|
|
Posting in the Company's Balance Sheet
XYZ Ltd. |
||
Balance Sheet |
||
Particulars |
Note No. |
Amount (Rs) |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
2. Non-Current Liabilities |
|
|
a. Long Term Borrowings |
1 |
5,00,000 |
3. Current Liabilities |
|
|
Total |
|
5,00,000 |
|
|
|
II. Assets |
|
|
1. Non-Current Assets |
|
|
a. Fixed Assets |
|
|
i. Tangible Assets |
2 |
4,50,000 |
b. Other Non-Current Assets |
3 |
50,000 |
2. Current Assets |
|
|
Total |
|
5,00,000 |
|
|
|
NOTES TO ACCOUNTS
Note No. |
Particulars |
Amount (Rs) |
1 |
Long Term Borrowings |
|
|
9% Debentures (Secured) |
5,00,000 |
|
||
2 |
Tangible Assets |
|
Machinery |
4,50,000 |
|
|
||
3 |
Other Non-Current Assets |
|
|
Discount on Issue of Debentures |
50,000 |
|
|
|
Answer:
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
Case (a) |
Machinery A/c |
Dr. |
|
1,65,000 |
|
|
To Vendor A/c |
|
|
1,65,000 |
|
|
(Machinery purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor A/c |
Dr. |
|
1,65,000 |
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
15,000 |
|
|
To 9% Debentures A/c |
|
|
1,50,000 |
|
|
To Premium on Redemption A/c |
|
|
15,000 |
|
|
To Securities Premium A/c |
|
|
15,000 |
|
|
(1,500 9% Debentures of Rs 100 each issued at Rs 10 premium) |
|
|
|
|
|
|
|
|
|
|
Case (b) |
Debenture Suspense A/c |
Dr. |
|
1,50,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
15,000 |
|
|
To 9% Debentures A/c |
|
|
1,50,000 |
|
|
To Premium on Redemption A/c |
|
|
15,000 |
|
|
(Debenture issued at as collateral Security) |
|
|
|
|
|
|
|
|
|
|
Case (c) |
Interest on Debentures A/c |
Dr. |
|
8,100 |
|
|
To Bank A/c |
|
|
8,100 |
|
|
(Half yearly Interest paid on 9% Debenture of Rs 1,80,000) (WN) |
|
|
|
|
|
|
|
|
|
|
Case (d) |
Bank A/c |
Dr. |
|
95,000 |
|
|
To 9% Debentures Application A/c |
|
|
95,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
9% Debenture Application A/c |
Dr. |
|
95,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
5,000 |
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
10,000 |
|
|
To 9% Debentures A/c |
|
|
1,00,000 |
|
|
To Premium on Redemption A/c |
|
|
10,000 |
|
|
(1,000 9% Debentures of Rs 100 each issued at 5% discount and repayable at a premium of 10%) |
|
|
|
|
|
|
|
|
|
Working Note:
WN Calculation of Interest on Debentures (Case c)
Interest on Debentures (for half year) =
View NCERT Solutions for all chapters of Class 15