Accountancy

Amrit Ltd. was promoted by Amrit and Bhaskar with an authorised capital of Rs. 10,00,000 divide into 1,00,000 shares of Rs. 10 each. The company decided to issue 1,000, 6% Debentures of Rs. 100 each to Amrit and Bhaskar each for their services in incorporating the company. Pass journal entry

Solution

Continue ReadingAmrit Ltd. was promoted by Amrit and Bhaskar with an authorised capital of Rs. 10,00,000 divide into 1,00,000 shares of Rs. 10 each. The company decided to issue 1,000, 6% Debentures of Rs. 100 each to Amrit and Bhaskar each for their services in incorporating the company. Pass journal entry

Alka Ltd. issued 5,000, 10% Debentures of Rs. 1,000 each at a discount of 10% redeemable at a premium of 5% after 5 years. According to the terms of issue Rs. 500 was payable on application and the balance amount on allotment of debentures. Record necessary entries regarding issue of 10% Debentures.

Solution

Continue ReadingAlka Ltd. issued 5,000, 10% Debentures of Rs. 1,000 each at a discount of 10% redeemable at a premium of 5% after 5 years. According to the terms of issue Rs. 500 was payable on application and the balance amount on allotment of debentures. Record necessary entries regarding issue of 10% Debentures.

Iron Products Ltd. issued 5,000; 9% Debentures of Rs. 100 each at a premium of Rs. 40 payable as follows; (i) Rs. 40, including premium of Rs. 10 on applications; (ii) Rs. 45, including premium of Rs. 15 on allotment; and (iii) Balance as first and final call. The issue was subscribed and allotment made. Calls were made and due amount was received. Pass Journal entries.

Solution

Continue ReadingIron Products Ltd. issued 5,000; 9% Debentures of Rs. 100 each at a premium of Rs. 40 payable as follows; (i) Rs. 40, including premium of Rs. 10 on applications; (ii) Rs. 45, including premium of Rs. 15 on allotment; and (iii) Balance as first and final call. The issue was subscribed and allotment made. Calls were made and due amount was received. Pass Journal entries.

Vijay Laxmi Ltd. invited applications for 10,000; 12% Debentures of Rs. 100 each at a premium of Rs. 70 per debenture. The full amount was payable on application. Applications were received for 13,500 debentures. Applications for 3,500 debentures were rejected and application money was refunded. Debentures were allotted to the remaining applications.

Solution

Continue ReadingVijay Laxmi Ltd. invited applications for 10,000; 12% Debentures of Rs. 100 each at a premium of Rs. 70 per debenture. The full amount was payable on application. Applications were received for 13,500 debentures. Applications for 3,500 debentures were rejected and application money was refunded. Debentures were allotted to the remaining applications.

Alok Ltd. issued 7,000, 10% Debentures of Rs. 500 each at a premium of Rs. 50 per debenture redeemable at a premium of 10% after 5 years. According to the terms of issue, Rs. 200 was payable on application and balance on allotment. Record necessary Journal entries at the time of issue of 10% Debentures.

Solution

Continue ReadingAlok Ltd. issued 7,000, 10% Debentures of Rs. 500 each at a premium of Rs. 50 per debenture redeemable at a premium of 10% after 5 years. According to the terms of issue, Rs. 200 was payable on application and balance on allotment. Record necessary Journal entries at the time of issue of 10% Debentures.

Nipa Limited issued Rs. 10,00,000 Debentures of Rs. 100 each at a premium of 10%, payable 25% on application (including premium) and the balance on allotment. The debentures were applied for and the amount was dully received. You are required to give Journal entries and prepare Cash Book.

Solution

Continue ReadingNipa Limited issued Rs. 10,00,000 Debentures of Rs. 100 each at a premium of 10%, payable 25% on application (including premium) and the balance on allotment. The debentures were applied for and the amount was dully received. You are required to give Journal entries and prepare Cash Book.

Raj Ltd. issued 5,000; 8% Debentures of Rs. 100 each at a premium of 5% payable as follows: Rs. 10 on application; Rs. 20 along with premium on allotment and balance on first and final call. Pass necessary Journal entries.

Solution

Continue ReadingRaj Ltd. issued 5,000; 8% Debentures of Rs. 100 each at a premium of 5% payable as follows: Rs. 10 on application; Rs. 20 along with premium on allotment and balance on first and final call. Pass necessary Journal entries.

Narain Laxmi Ltd. invited applications for issuing 7,500; 12% Debentures of Rs. 100 each at a premium of Rs. 35 per debenture. The full amount was payable on application. Applications were received for 10,000 Debentures. Allotment was made to all the applications on pro rata. Pass necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd.

Solution

Continue ReadingNarain Laxmi Ltd. invited applications for issuing 7,500; 12% Debentures of Rs. 100 each at a premium of Rs. 35 per debenture. The full amount was payable on application. Applications were received for 10,000 Debentures. Allotment was made to all the applications on pro rata. Pass necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd.