Are there any legal restrictions, similar to shares, for issue of debentures at a discount? Post category:Accountancy Reading time:1 mins read SOLUTION No, there are no restrictions relating to discount on issue of debentures. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostAre debentures less riskier than shares? Next PostMention two differences between ‘Premium on Issue of Debentures’ and ‘Premium on Redemption of Debentures’. You Might Also Like Kavita, Leena and Monica are partners in firm sharing profits in the ratio of 1: 1: 3 respectively. Their Capital Accounts showed the following balances on 31st March, 2012: Kavita Rs. 70,000; Leena Rs. 65,000 and Monica Rs. 2,10,000. Firm closes its accounts every year on 31st March. Kavita died on 30th September, 2012. In the event of death of any partner, the Partnership Deed provides for the following: (a) Interest on capital will be calculated at the rate of 6% p.a. (b) The deceased partner’s share in the goodwill of the firm will be calculated on the basis of 2 years’ purchase of the average profit of last three years. The profits of the firm for the last three years were Rs. 90,000; Rs. 1,00,000 and Rs. 1,10,000 respectively. (c) Her share in the Reserve Fund of the firm will be paid. The Reserve Fund of the firm was Rs. 60,000 at the time of Kavita’s death. (d) Her share of profit till the date of death will be calculated on the basis of sales. It is also specified that the sales during the year 2011-12 were Rs. 20,00,000. The sales from 1st April, 2012 to 30th September, 2012 were Rs. 4,00,000. The profit of the firm for the year ending 31st March, 2012 was Rs. 2,00,000. Prepare Kavita’s Capital Account to be presented to his legal representative. August 5, 2022 Enumerate two main steps involved in valuing the goodwill according to super profit method. September 26, 2022 ‘Sangam Woollens Ltd.’, Ludhiana, are the manufacturers and exporters of woollen garments. The company decided to distribute free of cost woollen garments to 10 villages of Lahaul and Spiti District of Himachal Pradesh. The company also decided to employ 50 young persons from these villages in its newly established factory. The company issued 40,000 Equity Shares of Rs. 10 each and 1,000, 9% Debentures of Rs. 100 each to the vendor for the purchase of machinery of Rs. 5,00,000. Pass necessary Journal entries. July 18, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Kavita, Leena and Monica are partners in firm sharing profits in the ratio of 1: 1: 3 respectively. Their Capital Accounts showed the following balances on 31st March, 2012: Kavita Rs. 70,000; Leena Rs. 65,000 and Monica Rs. 2,10,000. Firm closes its accounts every year on 31st March. Kavita died on 30th September, 2012. In the event of death of any partner, the Partnership Deed provides for the following: (a) Interest on capital will be calculated at the rate of 6% p.a. (b) The deceased partner’s share in the goodwill of the firm will be calculated on the basis of 2 years’ purchase of the average profit of last three years. The profits of the firm for the last three years were Rs. 90,000; Rs. 1,00,000 and Rs. 1,10,000 respectively. (c) Her share in the Reserve Fund of the firm will be paid. The Reserve Fund of the firm was Rs. 60,000 at the time of Kavita’s death. (d) Her share of profit till the date of death will be calculated on the basis of sales. It is also specified that the sales during the year 2011-12 were Rs. 20,00,000. The sales from 1st April, 2012 to 30th September, 2012 were Rs. 4,00,000. The profit of the firm for the year ending 31st March, 2012 was Rs. 2,00,000. Prepare Kavita’s Capital Account to be presented to his legal representative. August 5, 2022
Enumerate two main steps involved in valuing the goodwill according to super profit method. September 26, 2022
‘Sangam Woollens Ltd.’, Ludhiana, are the manufacturers and exporters of woollen garments. The company decided to distribute free of cost woollen garments to 10 villages of Lahaul and Spiti District of Himachal Pradesh. The company also decided to employ 50 young persons from these villages in its newly established factory. The company issued 40,000 Equity Shares of Rs. 10 each and 1,000, 9% Debentures of Rs. 100 each to the vendor for the purchase of machinery of Rs. 5,00,000. Pass necessary Journal entries. July 18, 2022