Accountancy

Global Ltd. issued 10,000, 8% Debentures of Rs. 100 each redeemable in four equal instalments by draw of lots from the end of 3 years at a premium of Rs. 9. Pass the Journal entries for writing off the Loss on Issue of Debentures. Also prepare Loss on issue of Debentures Account.

Solution

Continue ReadingGlobal Ltd. issued 10,000, 8% Debentures of Rs. 100 each redeemable in four equal instalments by draw of lots from the end of 3 years at a premium of Rs. 9. Pass the Journal entries for writing off the Loss on Issue of Debentures. Also prepare Loss on issue of Debentures Account.

On 1st January, 2017, Raha Ltd. issued 6,000, 8% Debentures of nominal (face) value of Rs. 100 each redeemable at 5% premium in equal proportions at the end of 5, 10 and 15 years. It has a balance of Rs. 10,000 in Securities Premium Reserve. Pass Journal entries. Also give Journal entries for writing off Loss on Issue of Debentures.

Solution

Continue ReadingOn 1st January, 2017, Raha Ltd. issued 6,000, 8% Debentures of nominal (face) value of Rs. 100 each redeemable at 5% premium in equal proportions at the end of 5, 10 and 15 years. It has a balance of Rs. 10,000 in Securities Premium Reserve. Pass Journal entries. Also give Journal entries for writing off Loss on Issue of Debentures.

Kitply Ltd. issued 72,00,000, 10% Debentures at a discount of 5%. The terms of issue provide the repayment at the end of 4 years. Kitply Ltd. Has a balance of 5,00,000 in Securities Premium Reserve. The company decided to write off discount on issue of debentures from Securities Premium Reserve in the first year. Pass the journal entry.

Solution

Continue ReadingKitply Ltd. issued 72,00,000, 10% Debentures at a discount of 5%. The terms of issue provide the repayment at the end of 4 years. Kitply Ltd. Has a balance of 5,00,000 in Securities Premium Reserve. The company decided to write off discount on issue of debentures from Securities Premium Reserve in the first year. Pass the journal entry.

On 1st April, 2015, V.V.L. Ltd issued 1,000, 9% Debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 10% after three years. Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31st March, 2016, assuming that interest is payable on 30th September and 31st March and the rate of tax deducted at source is 10%. The company closes its books on 31st March every year.

Solution

Continue ReadingOn 1st April, 2015, V.V.L. Ltd issued 1,000, 9% Debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 10% after three years. Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31st March, 2016, assuming that interest is payable on 30th September and 31st March and the rate of tax deducted at source is 10%. The company closes its books on 31st March every year.

Bright Ltd. issued 5,000; 10% Debentures of Rs. 100 each on 1st April, 2015. The issue was fully subscribed. According to the terms of issue, interest on the debentures is payable half-yearly on 30th September and 31st March and the tax deducted at source is 10%. Pass necessary journal entries related to the debenture interest for the year ending 31st March, 2016 and transfer of interest on debentures of the year to the Statement of Profit and Loss.

Solution

Continue ReadingBright Ltd. issued 5,000; 10% Debentures of Rs. 100 each on 1st April, 2015. The issue was fully subscribed. According to the terms of issue, interest on the debentures is payable half-yearly on 30th September and 31st March and the tax deducted at source is 10%. Pass necessary journal entries related to the debenture interest for the year ending 31st March, 2016 and transfer of interest on debentures of the year to the Statement of Profit and Loss.

XYZ Ltd. issued 5,000, 10% Debentures of Rs. 100 each on 1st April, 2015 at a discount of 10% redeemable at a premium of 10% after 4 years. Give journal entries for the year ended 31st March, 2016, assuming that the interest was payable half-yearly on 30th September and 31st March. Tax is to be deducted @ 10%.

Solution

Continue ReadingXYZ Ltd. issued 5,000, 10% Debentures of Rs. 100 each on 1st April, 2015 at a discount of 10% redeemable at a premium of 10% after 4 years. Give journal entries for the year ended 31st March, 2016, assuming that the interest was payable half-yearly on 30th September and 31st March. Tax is to be deducted @ 10%.

Pass necessary Journal entries for the issue of Debentures in the following cases: (a) Rs. 40,000; 15% Debentures of Rs. 100 each issued at a discount of 10% redeemable at par. (b) Rs. 80,000; 15% Debentures of Rs. 100 each issued at a premium of 10% redeemable at a premium of 10%.

Solution

Continue ReadingPass necessary Journal entries for the issue of Debentures in the following cases: (a) Rs. 40,000; 15% Debentures of Rs. 100 each issued at a discount of 10% redeemable at par. (b) Rs. 80,000; 15% Debentures of Rs. 100 each issued at a premium of 10% redeemable at a premium of 10%.

Pass necessary Journal entries for the issue of debentures in the following cases: (a) Rs. 40,000; 12% Debentures of Rs. 100 each issued at a premium of 5% redeemable at par. (b) Rs. 70,000; 12% Debentures of Rs. 100 each issued at a premium of 5% redeemable at Rs. 110.

Solution

Continue ReadingPass necessary Journal entries for the issue of debentures in the following cases: (a) Rs. 40,000; 12% Debentures of Rs. 100 each issued at a premium of 5% redeemable at par. (b) Rs. 70,000; 12% Debentures of Rs. 100 each issued at a premium of 5% redeemable at Rs. 110.

Pass journal entries in the following cases: (a) Rohit Ltd. issued Rs. 40,000; 12% Debentures at a premium of 5% redeemable at par. (b) Virat Ltd. issued Rs. 40,000; 12% Debentures at a discount of 10% redeemable at par. (c) Rahul Ltd. issued Rs.40,000; 12% Debentures at par redeemable at 10% premium. (d) Prithvi Ltd. issued Rs. 40,000; 12% Debentures at a discount of 5% and redeemable at 5% premium. (e) Shikhar Ltd. issued Rs. 40,000; 12% Debentures at a premium of 10% redeemable at 110%.

Solution

Continue ReadingPass journal entries in the following cases: (a) Rohit Ltd. issued Rs. 40,000; 12% Debentures at a premium of 5% redeemable at par. (b) Virat Ltd. issued Rs. 40,000; 12% Debentures at a discount of 10% redeemable at par. (c) Rahul Ltd. issued Rs.40,000; 12% Debentures at par redeemable at 10% premium. (d) Prithvi Ltd. issued Rs. 40,000; 12% Debentures at a discount of 5% and redeemable at 5% premium. (e) Shikhar Ltd. issued Rs. 40,000; 12% Debentures at a premium of 10% redeemable at 110%.