Solve this: .   10 .   O n   1 s t   A p r i l ,   2013 .   X   L t d .   i s s u e d   10 , 000 , 12 %   D e b e n t u r e s   o f R s 100   e a c h a t   R S   95 e a c h   r e d e e m a b l e   a t   a   p r e m i u m   o f 2 %   a f t e r   7   y e a r s   o r   e a r l i e r   a t   t h e   o p t i o n   o f   c o m p a n y   b y   c o n v e r s i o n   i n t o   E q u i t y   S h a r e s   o f   R s   20   e a c h   a t   a   p r e m i u m   o f   R s   5   p e r   s h a r e .   O n   1 s t   A p r i l 2018 .   t h e   c o m p a n y   c o n v e r t e d   t h e   d e b e n t u r e s   i n t o   e q u i t y   s h a r e s .   P a s s   J o u r n a l   e n t r i e s   f o r   i s s u e   a n d   c o n v e r s i o n .  

Dear Student
 
Journal in the books of the company
Date  Particulars    Debit   Credit 
2013        
01-Apr Bank A/c (10,000 x 95) Dr.          950,000  
  Loss on issue of Debenture A/c (10,000 x 5) Dr.            50,000  
    To 12% Debenture A/c (10,000 x 100)        1,000,000
  (Being Debentures issued at 5% Discount)      
         
         
  Loss on issue of Debenture A/c (10,000 x 2) Dr.            20,000  
    To Premium on Redemption of Debenture A/c              20,000
  (Being Debentures issued at 5%  discount to be redeemed at 2% Premium)      
         
2018        
01-Aug 12% Debentures A/c Dr.      1,000,000  
  Premium on Redemption of Debenture A/c Dr.            20,000  
    To Statement of Profit and Loss A/c (Loss Written Off)          50,000
    To Loss on Issue A/c (Loss not written off)              20,000
    To Debenture Holders A/c           950,000
  (Being Debentures due to be converted into equity shares)  
         
  Debenture Holders A/c Dr.          950,000  
    To Equity Share Capital A/c (38,000 x 20)           760,000
    To Securities Premium A/c (38,000 x 5)           190,000
  (Being 38,000 share (9,50,000 / 25) are issued at Rs 25/- per share for conversion of Rs 9,50,000 due to debentureholders)      


Regards

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