Double Entry Book Keeping Ts Grewal 2017 Solutions for Class 12 Commerce Accountancy Chapter 7 Joint Stock Company Accounts Issue Of Debentures are provided here with simple step-by-step explanations. These solutions for Joint Stock Company Accounts Issue Of Debentures are extremely popular among class 12 Commerce students for Accountancy Joint Stock Company Accounts Issue Of Debentures Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Double Entry Book Keeping Ts Grewal 2017 Book of class 12 Commerce Accountancy Chapter 7 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Double Entry Book Keeping Ts Grewal 2017 Solutions. All Double Entry Book Keeping Ts Grewal 2017 Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.
Page No 7.48:
Question 1:
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 50,000 | |||
To Debenture Application A/c
|
50,000 | ||||
(Application money received on 2,000 debentures) | |||||
Debenture Application A/c | Dr. | 50,000 | |||
To 8% Debentures A/c
|
50,000 | ||||
(Application money transferred to Debentures Account) | |||||
Debenture Allotment A/c | Dr. | 50,000 | |||
To 8% Debentures A/c
|
50,000 | ||||
(Allotment money due on 2,000 debentures) | |||||
Bank A/c | Dr. | 50,000 | |||
To Debenture Allotment A/c
|
50,000 | ||||
(Allotment money received on 2,000 debentures) | |||||
Debenture First and Final Call A/c | Dr. | 1,00,000 | |||
To 8% Debentures A/c
|
1,00,000 | ||||
(First and final call due on 2,000 debentures) | |||||
Bank A/c | Dr. | 1,00,000 | |||
To Debenture First and Final Call A/c
|
1,00,000 | ||||
(Amount received on first and final call) | |||||
Page No 7.49:
Question 2:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 50,000 | |||
To Debenture Application A/c
|
50,000 | ||||
(Application money received on 2,000 debentures) | |||||
Debenture Application A/c | Dr. | 50,000 | |||
To 8% Debentures A/c
|
50,000 | ||||
(Application money transferred to Debentures Account) | |||||
Debenture Allotment A/c | Dr. | 50,000 | |||
To 8% Debentures A/c
|
50,000 | ||||
(Allotment money due on 2,000 debentures) | |||||
Bank A/c | Dr. | 50,000 | |||
To Debenture Allotment A/c
|
50,000 | ||||
(Allotment money received on 2,000 debentures) | |||||
Debenture First and Final Call A/c | Dr. | 1,00,000 | |||
To 8% Debentures A/c
|
1,00,000 | ||||
(First and final call due on 2,000 debentures) | |||||
Bank A/c | Dr. | 1,00,000 | |||
To Debenture First and Final Call A/c
|
1,00,000 | ||||
(Amount received on first and final call) | |||||
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 60,00,000 | |||
To Debenture Application and Allotment A/c
|
60,00,000 | ||||
(Application money received on 60,000 debentures) | |||||
Debenture Application and Allotment A/c | Dr. | 60,00,000 | |||
To 10% Debentures A/c
|
40,00,000 | ||||
To Bank A/c
|
20,00,000 | ||||
(Application money transferred to Debentures Account and excess money refunded) | |||||
Page No 7.49:
Question 3:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 60,00,000 | |||
To Debenture Application and Allotment A/c
|
60,00,000 | ||||
(Application money received on 60,000 debentures) | |||||
Debenture Application and Allotment A/c | Dr. | 60,00,000 | |||
To 10% Debentures A/c
|
40,00,000 | ||||
To Bank A/c
|
20,00,000 | ||||
(Application money transferred to Debentures Account and excess money refunded) | |||||
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 7.49:
Question 4:
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:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 50,000 | |||
To Debentures Application A/c
|
50,000 | ||||
(Applications money received for 5,000, 8% debentures @ Rs 10 per debenture) | |||||
Debentures Application A/c | Dr. | 50,000 | |||
To 8% Debentures A/c
|
50,000 | ||||
(Application money transferred to 8% Debentures A/c) | |||||
Debenture Allotment A/c (5,000 × 20) | Dr. | 1,00,000 | |||
To 8% Debentures A/c (5,000 × 15)
|
75,000 | ||||
To Securities Premium A/c (5,000 × 5)
|
25,000 | ||||
(Allotment money due on 5,000 debentures) | |||||
Bank A/c | Dr. | 1,00,000 | |||
To Debentures Allotment A/c
|
1,00,000 | ||||
(Allotment money received on 5,000 debentures) | |||||
Debenture First and Final Call A/c (5,000 × 75) | Dr. | 3,75,000 | |||
To 8% Debentures A/c
|
3,75,000 | ||||
( Amount due on first call @ Rs 75 per debenture) | |||||
Bank A/c | Dr. | 3,75,000 | |||
To Debentures First and Final Call A/c
|
3,75,000 | ||||
(Amount received on first call) | |||||
Balance Sheet of X Lt.d
as at …..
|
||
Particulars | Note No. |
Amount (Rs) |
I. Equity and Liabilities | ||
1. Shareholders’ Funds
|
||
a. Share Capital
|
||
b. Reserves and Surplus
|
1 | 25,000 |
2. Non-Current Liabilities
|
||
a. Long-term Borrowings
|
2 | 5,00,000 |
Total | 5,25,000 | |
II. Assets |
||
2. Current Assets
|
||
a. Cash and Cash Equivalents
|
3 | 5,25,000 |
Total | 5,25,000 | |
NOTES TO ACCOUNTS | ||
Note No. |
Particulars | Amount (Rs) |
1 | Reserves and Surplus | |
Securities Premium
|
25,000 | |
2 | Long Term Borrowings | |
5,000, 8% Debentures of Rs 100 each
|
5,00,000 | |
3 | Cash and Cash Equivalents | |
Cash at Bank
|
5,25,000 | |
Page No 7.49:
Question 5:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 50,000 | |||
To Debentures Application A/c
|
50,000 | ||||
(Applications money received for 5,000, 8% debentures @ Rs 10 per debenture) | |||||
Debentures Application A/c | Dr. | 50,000 | |||
To 8% Debentures A/c
|
50,000 | ||||
(Application money transferred to 8% Debentures A/c) | |||||
Debenture Allotment A/c (5,000 × 20) | Dr. | 1,00,000 | |||
To 8% Debentures A/c (5,000 × 15)
|
75,000 | ||||
To Securities Premium A/c (5,000 × 5)
|
25,000 | ||||
(Allotment money due on 5,000 debentures) | |||||
Bank A/c | Dr. | 1,00,000 | |||
To Debentures Allotment A/c
|
1,00,000 | ||||
(Allotment money received on 5,000 debentures) | |||||
Debenture First and Final Call A/c (5,000 × 75) | Dr. | 3,75,000 | |||
To 8% Debentures A/c
|
3,75,000 | ||||
( Amount due on first call @ Rs 75 per debenture) | |||||
Bank A/c | Dr. | 3,75,000 | |||
To Debentures First and Final Call A/c
|
3,75,000 | ||||
(Amount received on first call) | |||||
Balance Sheet of X Lt.d
as at …..
|
||
Particulars | Note No. |
Amount (Rs) |
I. Equity and Liabilities | ||
1. Shareholders’ Funds
|
||
a. Share Capital
|
||
b. Reserves and Surplus
|
1 | 25,000 |
2. Non-Current Liabilities
|
||
a. Long-term Borrowings
|
2 | 5,00,000 |
Total | 5,25,000 | |
II. Assets |
||
2. Current Assets
|
||
a. Cash and Cash Equivalents
|
3 | 5,25,000 |
Total | 5,25,000 | |
NOTES TO ACCOUNTS | ||
Note No. |
Particulars | Amount (Rs) |
1 | Reserves and Surplus | |
Securities Premium
|
25,000 | |
2 | Long Term Borrowings | |
5,000, 8% Debentures of Rs 100 each
|
5,00,000 | |
3 | Cash and Cash Equivalents | |
Cash at Bank
|
5,25,000 | |
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Bank A/c (300030) |
Dr. |
|
90,000 |
|
|
To Debenture Application A/c |
|
|
|
90,000 |
|
(Received application money on 3,000 debentures) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
90,000 |
|
|
To 10% Debentures A/c |
|
|
|
60,000 |
|
To Securities Premium Reserve A/c (3,00010) |
|
|
|
30,000 |
|
(Transfer of application money to Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Allotment A/c (3,00040) |
Dr. |
|
1,20,000 |
|
|
To 10% Debentures A/c (3,00020) |
|
|
|
60,000 |
|
To Securities Premium Reserve A/c (3,00020) |
|
|
|
60,000 |
|
(Allotment due on 3,000 Debentures at a premium of Rs 20 per Debentures) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,20,000 |
|
|
To Debenture Allotment A/c |
|
|
|
1,20,000 |
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture First and Final Call A/c (3,00060) |
|
|
1,80,000 |
|
|
To 10% Debentures A/c |
|
|
|
1,80,000 |
|
(First and Final Call due on 3,000 Debentures at Rs 60 per Debentures) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,80,000 |
|
|
To Debenture First and Final Call A/c |
|
|
|
1,80,000 |
|
(First and Final Call money received) |
|
|
|
|
|
|
|
|
|
Page No 7.49:
Question 6:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Bank A/c (300030) |
Dr. |
|
90,000 |
|
|
To Debenture Application A/c |
|
|
|
90,000 |
|
(Received application money on 3,000 debentures) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
90,000 |
|
|
To 10% Debentures A/c |
|
|
|
60,000 |
|
To Securities Premium Reserve A/c (3,00010) |
|
|
|
30,000 |
|
(Transfer of application money to Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Allotment A/c (3,00040) |
Dr. |
|
1,20,000 |
|
|
To 10% Debentures A/c (3,00020) |
|
|
|
60,000 |
|
To Securities Premium Reserve A/c (3,00020) |
|
|
|
60,000 |
|
(Allotment due on 3,000 Debentures at a premium of Rs 20 per Debentures) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,20,000 |
|
|
To Debenture Allotment A/c |
|
|
|
1,20,000 |
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture First and Final Call A/c (3,00060) |
|
|
1,80,000 |
|
|
To 10% Debentures A/c |
|
|
|
1,80,000 |
|
(First and Final Call due on 3,000 Debentures at Rs 60 per Debentures) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,80,000 |
|
|
To Debenture First and Final Call A/c |
|
|
|
1,80,000 |
|
(First and Final Call money received) |
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Bank A/c (5,000×40) |
Dr. |
|
2,00,000 |
|
|
To Debenture Application A/c |
|
|
|
2,00,000 |
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
2,00,000 |
|
|
To 9% Debentures A/c (5,000×30) |
|
|
|
1,50,000 |
|
To Security Premium Reserve A/c (5,000×10) |
|
|
|
50,000 |
|
(Application money adjusted) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Allotment A/c (5,000×45) |
Dr. |
|
2,25,000 |
|
|
To 9% Debentures A/c (5,000×30) |
|
|
|
1,50,000 |
|
To Security Premium Reserve A/c (5,000×15) |
|
|
|
75,000 |
|
(Allotment money due) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (5,000×45) |
Dr. |
|
2,25,000 |
|
|
To Debenture Allotment A/c |
|
|
|
2,25,000 |
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture First and Final call A/c (5,000×55) |
Dr. |
|
2,75,000 |
|
|
To 9% Debentures A/c (5,000×40) |
|
|
|
2,00,000 |
|
To Security Premium Reserve A/c (5,000×15) |
|
|
|
75,000 |
|
(First call money due) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,75,000 |
|
|
To Debenture Final and Final call A/c |
|
|
|
2,75,000 |
|
(First Call money Received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page No 7.49:
Question 7:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Bank A/c (5,000×40) |
Dr. |
|
2,00,000 |
|
|
To Debenture Application A/c |
|
|
|
2,00,000 |
|
(Application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
2,00,000 |
|
|
To 9% Debentures A/c (5,000×30) |
|
|
|
1,50,000 |
|
To Security Premium Reserve A/c (5,000×10) |
|
|
|
50,000 |
|
(Application money adjusted) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Allotment A/c (5,000×45) |
Dr. |
|
2,25,000 |
|
|
To 9% Debentures A/c (5,000×30) |
|
|
|
1,50,000 |
|
To Security Premium Reserve A/c (5,000×15) |
|
|
|
75,000 |
|
(Allotment money due) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (5,000×45) |
Dr. |
|
2,25,000 |
|
|
To Debenture Allotment A/c |
|
|
|
2,25,000 |
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture First and Final call A/c (5,000×55) |
Dr. |
|
2,75,000 |
|
|
To 9% Debentures A/c (5,000×40) |
|
|
|
2,00,000 |
|
To Security Premium Reserve A/c (5,000×15) |
|
|
|
75,000 |
|
(First call money due) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
2,75,000 |
|
|
To Debenture Final and Final call A/c |
|
|
|
2,75,000 |
|
(First Call money Received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Bank A/c (2,500 90) |
Dr. |
|
2,25,000 |
|
|
To Debenture Application & Allotment A/c |
|
|
|
2,25,000 |
|
(Received application money on 2,500 debentures) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application & Allotment A/c (2,500 90) |
Dr. |
|
2,25,000 |
|
|
Discount on Issue of Debentures A/c(2,50010) |
Dr. |
|
25,000 |
|
|
To 9% Debentures A/c |
|
|
|
2,50,000 |
|
(Transfer of application money to Debentures A/c) |
|
|
|
|
|
|
|
|
|
Page No 7.49:
Question 8:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Bank A/c (2,500 90) |
Dr. |
|
2,25,000 |
|
|
To Debenture Application & Allotment A/c |
|
|
|
2,25,000 |
|
(Received application money on 2,500 debentures) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application & Allotment A/c (2,500 90) |
Dr. |
|
2,25,000 |
|
|
Discount on Issue of Debentures A/c(2,50010) |
Dr. |
|
25,000 |
|
|
To 9% Debentures A/c |
|
|
|
2,50,000 |
|
(Transfer of application money to Debentures A/c) |
|
|
|
|
|
|
|
|
|
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 2,50,000 | |||
To Debenture Application A/c
|
2,50,000 | ||||
(Application money received on 10,000 debentures) | |||||
Debenture Application A/c | Dr. | 2,50,000 | |||
To 10% Debentures A/c
|
2,50,000 | ||||
(Application money transferred to Debentures Account) | |||||
Debenture Allotment A/c | Dr. | 6,50,000 | |||
Discount on Issue of Debentures A/c | 1,00,000 | ||||
To 10% Debentures A/c
|
7,50,000 | ||||
(Allotment money due on debentures) | |||||
Bank A/c | Dr. | 6,50,000 | |||
To Debenture Allotment A/c
|
6,50,000 | ||||
(Amount received on allotment) | |||||
Page No 7.49:
Question 9:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 2,50,000 | |||
To Debenture Application A/c
|
2,50,000 | ||||
(Application money received on 10,000 debentures) | |||||
Debenture Application A/c | Dr. | 2,50,000 | |||
To 10% Debentures A/c
|
2,50,000 | ||||
(Application money transferred to Debentures Account) | |||||
Debenture Allotment A/c | Dr. | 6,50,000 | |||
Discount on Issue of Debentures A/c | 1,00,000 | ||||
To 10% Debentures A/c
|
7,50,000 | ||||
(Allotment money due on debentures) | |||||
Bank A/c | Dr. | 6,50,000 | |||
To Debenture Allotment A/c
|
6,50,000 | ||||
(Amount received on allotment) | |||||
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
|
Incorporation Cost A/c (2,000 × 100) |
Dr. |
|
2,00,000 |
|
|
To 6% Debentures A/c |
|
|
|
2,00,000 |
|
( Debentures issued to promoters) |
|
|
|
|
|
|
|
|
|
|
Page No 7.49:
Question 10:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
|
Incorporation Cost A/c (2,000 × 100) |
Dr. |
|
2,00,000 |
|
|
To 6% Debentures A/c |
|
|
|
2,00,000 |
|
( Debentures issued to promoters) |
|
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Bank A/c (5,000 110) |
Dr. |
|
5,50,000 |
|
|
To Debenture Application & Allotment A/c |
|
|
|
5,50,000 |
|
(Received application money on 5,000 debentures) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application & Allotment A/c (5,000 110) |
Dr. |
|
5,50,000 |
|
|
To 8% Debentures A/c (5,000 100) |
|
|
|
5,00,000 |
|
To Securities Premium Reserve A/c (5,000 10) |
|
|
|
50,000 |
|
(Transfer of application money to Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
Underwriting Commission A/c |
Dr. |
|
27,500 |
|
|
To Basu A/c (Underwriting Commission made due) |
|
|
|
27,500 |
|
|
|
|
|
|
|
Basu A/c |
Dr. |
|
27,500 |
|
|
To 8% Debentures A/c (250 100) |
|
|
|
25,000 |
|
To Securities Premium Reserve A/c (25010) |
|
|
|
2,500 |
|
(Debentures issued to Underwriters) |
|
|
|
Working Notes:
Page No 7.49:
Question 11:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Bank A/c (5,000 110) |
Dr. |
|
5,50,000 |
|
|
To Debenture Application & Allotment A/c |
|
|
|
5,50,000 |
|
(Received application money on 5,000 debentures) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application & Allotment A/c (5,000 110) |
Dr. |
|
5,50,000 |
|
|
To 8% Debentures A/c (5,000 100) |
|
|
|
5,00,000 |
|
To Securities Premium Reserve A/c (5,000 10) |
|
|
|
50,000 |
|
(Transfer of application money to Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
Underwriting Commission A/c |
Dr. |
|
27,500 |
|
|
To Basu A/c (Underwriting Commission made due) |
|
|
|
27,500 |
|
|
|
|
|
|
|
Basu A/c |
Dr. |
|
27,500 |
|
|
To 8% Debentures A/c (250 100) |
|
|
|
25,000 |
|
To Securities Premium Reserve A/c (25010) |
|
|
|
2,500 |
|
(Debentures issued to Underwriters) |
|
|
|
Working Notes:
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Entry for all cases | |||||
Assets A/c | Dr. | 6,60,000 | |||
Goodwill A/c (Balancing Figure) | Dr. | 20,000 | |||
To Liabilities A/c
|
80,000 | ||||
To Y Ltd.
|
6,00,000 | ||||
(Purchased assets and liabilities of Y Ltd.) | |||||
Case (a) | Y Ltd. | Dr. | 6,00,000 | ||
To 12% Debentures A/c
|
5,40,000 | ||||
To Cash A/c (10% of 6,00,000)
|
60,000 | ||||
(Issue of 12% debentures at par) | |||||
Case (b) | Y Ltd. | Dr. | 6,00,000 | ||
To 12% Debentures A/c (WN1)
|
4,50,000 | ||||
To Securities Premium A/c
|
90,000 | ||||
To Cash A/c (10% of 6,00,000)
|
60,000 | ||||
(Issue of 12% debentures at 20% premium) | |||||
Case (c) | Y Ltd. | Dr. | 6,00,000 | ||
Discount on Issue of Debentures A/c (WN2) | Dr. | 60,000 | |||
To 12% Debentures A/c
|
6,00,000 | ||||
To Cash A/c (10% of 6,00,000)
|
60,000 | ||||
(Issue of 12% debentures at 10% discount) | |||||
Working Notes:
WN 1: Calculation of number of debentures issued
WN 2: Calculation of number of debentures issued
Page No 7.50:
Question 12:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Entry for all cases | |||||
Assets A/c | Dr. | 6,60,000 | |||
Goodwill A/c (Balancing Figure) | Dr. | 20,000 | |||
To Liabilities A/c
|
80,000 | ||||
To Y Ltd.
|
6,00,000 | ||||
(Purchased assets and liabilities of Y Ltd.) | |||||
Case (a) | Y Ltd. | Dr. | 6,00,000 | ||
To 12% Debentures A/c
|
5,40,000 | ||||
To Cash A/c (10% of 6,00,000)
|
60,000 | ||||
(Issue of 12% debentures at par) | |||||
Case (b) | Y Ltd. | Dr. | 6,00,000 | ||
To 12% Debentures A/c (WN1)
|
4,50,000 | ||||
To Securities Premium A/c
|
90,000 | ||||
To Cash A/c (10% of 6,00,000)
|
60,000 | ||||
(Issue of 12% debentures at 20% premium) | |||||
Case (c) | Y Ltd. | Dr. | 6,00,000 | ||
Discount on Issue of Debentures A/c (WN2) | Dr. | 60,000 | |||
To 12% Debentures A/c
|
6,00,000 | ||||
To Cash A/c (10% of 6,00,000)
|
60,000 | ||||
(Issue of 12% debentures at 10% discount) | |||||
Working Notes:
WN 1: Calculation of number of debentures issued
WN 2: Calculation of number of debentures issued
Answer:
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 Liabilities A/c
|
30,000 | ||||
To Goneby Co.
|
3,30,000 | ||||
(Purchase of Assets and Liabilities of Goneby Ltd.) | |||||
Goneby Co. | Dr. | 3,30,000 | |||
To _ % Debentures A/c
|
3,00,000 | ||||
To Securities Premium A/c
|
30,000 | ||||
(Issue of debentures at 10% premium) | |||||
Working Notes: Calculation of Number of Debentures issued
Page No 7.50:
Question 13:
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 Liabilities A/c
|
30,000 | ||||
To Goneby Co.
|
3,30,000 | ||||
(Purchase of Assets and Liabilities of Goneby Ltd.) | |||||
Goneby Co. | Dr. | 3,30,000 | |||
To _ % Debentures A/c
|
3,00,000 | ||||
To Securities Premium A/c
|
30,000 | ||||
(Issue of debentures at 10% premium) | |||||
Working Notes: Calculation of Number of Debentures issued
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit
Amount (Rs) |
|
Sundry Assets A/c | Dr. | 5,40,000 | |||
To A Ltd.
|
5,40,000 | ||||
(Purchased business of A Ltd.) | |||||
A Ltd. | Dr. | 5,40,000 | |||
To 9% Debentures A/c
|
4,00,000 | ||||
To Securities Premium A/c
|
40,000 | ||||
To Bank A/c
|
1,00,000 | ||||
(Payment made to A Ltd partially through cheque and remaining by issue of 9% debentures at 10% premium) | |||||
Working Notes: Calculation of Number of Debentures issued
Page No 7.50:
Question 14:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit
Amount (Rs) |
|
Sundry Assets A/c | Dr. | 5,40,000 | |||
To A Ltd.
|
5,40,000 | ||||
(Purchased business of A Ltd.) | |||||
A Ltd. | Dr. | 5,40,000 | |||
To 9% Debentures A/c
|
4,00,000 | ||||
To Securities Premium A/c
|
40,000 | ||||
To Bank A/c
|
1,00,000 | ||||
(Payment made to A Ltd partially through cheque and remaining by issue of 9% debentures at 10% premium) | |||||
Working Notes: Calculation of Number of Debentures issued
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
Machinery A/c | Dr. | 6,30,000 | |||
To B’s A/c
|
6,30,000 | ||||
(Machinery purchased from B) | |||||
B’s A/c | Dr. | 6,30,000 | |||
To 10% Debentures A/c
|
6,00,000 | ||||
To Securities Premium A/c
|
30,000 | ||||
(Issued 10% debentures at 5% premium to B for purchase consideration) | |||||
Working Notes: Calculation of Number of Debentures issued
Page No 7.50:
Question 15:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
Machinery A/c | Dr. | 6,30,000 | |||
To B’s A/c
|
6,30,000 | ||||
(Machinery purchased from B) | |||||
B’s A/c | Dr. | 6,30,000 | |||
To 10% Debentures A/c
|
6,00,000 | ||||
To Securities Premium A/c
|
30,000 | ||||
(Issued 10% debentures at 5% premium to B for purchase consideration) | |||||
Working Notes: Calculation of Number of Debentures issued
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Plant and Machinery A/c | Dr. | 10,00,000 | |||
To Vendor’s A/c
|
10,00,000 | ||||
(Purchased plant and machinery from the vendor) | |||||
Vendor’s A/c | Dr. | 10,00,000 | |||
Discount on Issue of Debentures A/c | Dr. | 75,000 | |||
To 10% Debenture A/c
|
7,50,000 | ||||
To Cash A/c
|
3,25,000 | ||||
(Payment made to vendor partially in cash and remaining by issue of 10% debentures at 10% discount) | |||||
Working Notes: Calculation of Number of Debentures issued
Page No 7.50:
Question 16:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Plant and Machinery A/c | Dr. | 10,00,000 | |||
To Vendor’s A/c
|
10,00,000 | ||||
(Purchased plant and machinery from the vendor) | |||||
Vendor’s A/c | Dr. | 10,00,000 | |||
Discount on Issue of Debentures A/c | Dr. | 75,000 | |||
To 10% Debenture A/c
|
7,50,000 | ||||
To Cash A/c
|
3,25,000 | ||||
(Payment made to vendor partially in cash and remaining by issue of 10% debentures at 10% discount) | |||||
Working Notes: Calculation of Number of Debentures issued
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.) |
|
|
|
|
|
|
|
|
|
For issuing Debentures 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)
|
|
|
|
|
|
|
|
|
|
Page No 7.50:
Question 17:
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.) |
|
|
|
|
|
|
|
|
|
For issuing Debentures 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)
|
|
|
|
|
|
|
|
|
|
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 7.50:
Question 18:
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:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
(i) | Bank A/c | Dr. | 5,00,000 | ||
To Debenture Application and Allotment A/c
|
5,00,000 | ||||
(Money on Application and Allotment received) | |||||
Debenture Application and Allotment A/c | Dr. | 5,00,000 | |||
To 10% Debentures A/c
|
5,00,000 | ||||
(Money transferred to 10% Debentures Account) | |||||
(ii) | Fixed Assets A/c | Dr. | 5,50,000 | ||
To Vendor’s A/c
|
5,50,000 | ||||
(Purchased fixed assets from vendor) | |||||
Vendor’s A/c | Dr. | 5,50,000 | |||
To 10% Debentures A/c
|
5,00,000 | ||||
To Securities Premium A/c | 50,000 | ||||
(Debentures issued to vendor for purchase of assets) | |||||
Page No 7.50:
Question 19:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
(i) | Bank A/c | Dr. | 5,00,000 | ||
To Debenture Application and Allotment A/c
|
5,00,000 | ||||
(Money on Application and Allotment received) | |||||
Debenture Application and Allotment A/c | Dr. | 5,00,000 | |||
To 10% Debentures A/c
|
5,00,000 | ||||
(Money transferred to 10% Debentures Account) | |||||
(ii) | Fixed Assets A/c | Dr. | 5,50,000 | ||
To Vendor’s A/c
|
5,50,000 | ||||
(Purchased fixed assets from vendor) | |||||
Vendor’s A/c | Dr. | 5,50,000 | |||
To 10% Debentures A/c
|
5,00,000 | ||||
To Securities Premium A/c | 50,000 | ||||
(Debentures issued to vendor for purchase of assets) | |||||
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Entry for all cases | |||||
Assets A/c | Dr. | 6,60,000 | |||
Goodwill A/c (Balancing Figure) | Dr. | 20,000 | |||
To Liabilities A/c
|
80,000 | ||||
To Y Ltd.
|
6,00,000 | ||||
(Purchased assets and liabilities of Y Ltd.) | |||||
Case (a) | Y Ltd. | Dr. | 6,00,000 | ||
To 12% Debentures A/c (5,400 × 100)
|
5,40,000 | ||||
To Bank A/c (10% of 6,00,000)
|
60,000 | ||||
(Cash paid to Y Ltd. and for the remaining 5,400 12% Debentures issued at par) | |||||
Case (b) | Y Ltd. | Dr. | 6,00,000 | ||
To 12% Debentures A/c (4,500 × 100)
|
4,50,000 | ||||
To Securities Premium A/c (4,500 × 20)
|
90,000 | ||||
To Bank A/c (10% of 6,00,000)
|
60,000 | ||||
(Cash paid to Y Ltd. and for the remaining 5,400 12% Debentures issued at 20% premium) | |||||
Page No 7.50:
Question 20:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Entry for all cases | |||||
Assets A/c | Dr. | 6,60,000 | |||
Goodwill A/c (Balancing Figure) | Dr. | 20,000 | |||
To Liabilities A/c
|
80,000 | ||||
To Y Ltd.
|
6,00,000 | ||||
(Purchased assets and liabilities of Y Ltd.) | |||||
Case (a) | Y Ltd. | Dr. | 6,00,000 | ||
To 12% Debentures A/c (5,400 × 100)
|
5,40,000 | ||||
To Bank A/c (10% of 6,00,000)
|
60,000 | ||||
(Cash paid to Y Ltd. and for the remaining 5,400 12% Debentures issued at par) | |||||
Case (b) | Y Ltd. | Dr. | 6,00,000 | ||
To 12% Debentures A/c (4,500 × 100)
|
4,50,000 | ||||
To Securities Premium A/c (4,500 × 20)
|
90,000 | ||||
To Bank A/c (10% of 6,00,000)
|
60,000 | ||||
(Cash paid to Y Ltd. and for the remaining 5,400 12% Debentures issued at 20% premium) | |||||
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 7.50:
Question 21:
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:
Exe 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
Exe 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 |
|
|
|
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 7.50:
Question 22:
Exe 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
Exe 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 |
|
|
|
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:
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 7.51:
Question 23:
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) |
|
Bank A/c | Dr. | 10,00,000 | |||
To Debenture Application and Allotment A/c
|
10,00,000 | ||||
Applications received for 10,000, debentures of Rs 100 each) | |||||
Debenture Application and Allotment A/c | Dr. | 10,00,000 | |||
Loss on Issue of Debentures A/c | Dr. | 1,00,000 | |||
To _% Debentures A/c
|
10,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
1,00,000 | ||||
(Debentures issued at par and redeemable at premium) | |||||
Page No 7.51:
Question 24:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 10,00,000 | |||
To Debenture Application and Allotment A/c
|
10,00,000 | ||||
Applications received for 10,000, debentures of Rs 100 each) | |||||
Debenture Application and Allotment A/c | Dr. | 10,00,000 | |||
Loss on Issue of Debentures A/c | Dr. | 1,00,000 | |||
To _% Debentures A/c
|
10,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
1,00,000 | ||||
(Debentures issued at par and redeemable at premium) | |||||
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 1,00,000 | |||
To Debenture Application and Allotment A/c
|
1,00,000 | ||||
(Applications received for Rs 1,00,000, 7% debentures) | |||||
Debenture Application and Allotment A/c | Dr. | 1,00,000 | |||
Loss on Issue of Debentures A/c | Dr. | 5,000 | |||
To 7% Debentures A/c
|
1,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
5,000 | ||||
(Debentures issued at par and redeemable at premium) | |||||
Page No 7.51:
Question 25:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 1,00,000 | |||
To Debenture Application and Allotment A/c
|
1,00,000 | ||||
(Applications received for Rs 1,00,000, 7% debentures) | |||||
Debenture Application and Allotment A/c | Dr. | 1,00,000 | |||
Loss on Issue of Debentures A/c | Dr. | 5,000 | |||
To 7% Debentures A/c
|
1,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
5,000 | ||||
(Debentures issued at par and redeemable at premium) | |||||
Answer:
(i)
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 2,00,00,000 | |||
To Debenture Application and Allotment A/c
|
2,00,00,000 | ||||
(Applications received for 4,00,000, 9% debentures of Rs 50 each) | |||||
Debenture Application and Allotment A/c | Dr. | 2,00,00,000 | |||
Loss on Issue of Debentures A/c | Dr. | 20,00,000 | |||
To 9% Debentures A/c
|
2,00,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
20,00,000 | ||||
(Debentures issued at par and redeemable at premium) | |||||
(ii)
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 2,10,00,000 | |||
To Debenture Application and Allotment A/c
|
2,10,00,000 | ||||
(Applications received for 4,00,000, 9% debentures of Rs 50 each) | |||||
Debenture Application and Allotment A/c | Dr. | 2,10,00,000 | |||
Loss on Issue of Debentures A/c | Dr. | 20,00,000 | |||
To 9% Debentures A/c
|
2,00,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
20,00,000 | ||||
To Securities Premium A/c
|
10,00,000 | ||||
(Debentures issued at premium and redeemable at premium) | |||||
Page No 7.51:
Question 26:
(i)
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 2,00,00,000 | |||
To Debenture Application and Allotment A/c
|
2,00,00,000 | ||||
(Applications received for 4,00,000, 9% debentures of Rs 50 each) | |||||
Debenture Application and Allotment A/c | Dr. | 2,00,00,000 | |||
Loss on Issue of Debentures A/c | Dr. | 20,00,000 | |||
To 9% Debentures A/c
|
2,00,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
20,00,000 | ||||
(Debentures issued at par and redeemable at premium) | |||||
(ii)
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 2,10,00,000 | |||
To Debenture Application and Allotment A/c
|
2,10,00,000 | ||||
(Applications received for 4,00,000, 9% debentures of Rs 50 each) | |||||
Debenture Application and Allotment A/c | Dr. | 2,10,00,000 | |||
Loss on Issue of Debentures A/c | Dr. | 20,00,000 | |||
To 9% Debentures A/c
|
2,00,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
20,00,000 | ||||
To Securities Premium A/c
|
10,00,000 | ||||
(Debentures issued at premium and redeemable at 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 7.51:
Question 27:
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 7.51:
Question 28:
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 7.51:
Question 29:
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) |
|
Bank A/c | Dr. | 75,00,000 | |||
To Debenture Application and Allotment A/c
|
75,00,000 | ||||
(Applications received for 75,000, 8% debentures of Rs 100 each) | |||||
Debenture Application and Allotment A/c | Dr. | 75,00,000 | |||
To 8% Debentures A/c
|
75,00,000 | ||||
(Debentures issued at par, redeemable at par) | |||||
Page No 7.51:
Question 30:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 75,00,000 | |||
To Debenture Application and Allotment A/c
|
75,00,000 | ||||
(Applications received for 75,000, 8% debentures of Rs 100 each) | |||||
Debenture Application and Allotment A/c | Dr. | 75,00,000 | |||
To 8% Debentures A/c
|
75,00,000 | ||||
(Debentures issued at par, redeemable at par) | |||||
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 18,40,000 | |||
To Debenture Application and Allotment A/c
|
18,40,000 | ||||
(Applications received for 40,000, 9% debentures of Rs 50 each at a discount of 8%) | |||||
Debenture Application and Allotment A/c | Dr. | 18,40,000 | |||
Discount on Issue of Debentures A/c | Dr. | 1,60,000 | |||
To 9% Debentures A/c
|
20,00,000 | ||||
(Debentures issued at discount, redeemable at par) | |||||
Page No 7.51:
Question 31:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 18,40,000 | |||
To Debenture Application and Allotment A/c
|
18,40,000 | ||||
(Applications received for 40,000, 9% debentures of Rs 50 each at a discount of 8%) | |||||
Debenture Application and Allotment A/c | Dr. | 18,40,000 | |||
Discount on Issue of Debentures A/c | Dr. | 1,60,000 | |||
To 9% Debentures A/c
|
20,00,000 | ||||
(Debentures issued at discount, redeemable at par) | |||||
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 1,05,000 | |||
To Debenture Application and Allotment A/c
|
1,05,000 | ||||
(Applications received for Rs 1,00,000, 9% debentures at a premium of 5%) | |||||
Debenture Application and Allotment A/c | Dr. | 1,05,000 | |||
To 9% Debentures A/c
|
1,00,000 | ||||
To Securities Premium A/c
|
5,000 | ||||
(Debentures issued at premium, redeemable at par) | |||||
Page No 7.51:
Question 32:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 1,05,000 | |||
To Debenture Application and Allotment A/c
|
1,05,000 | ||||
(Applications received for Rs 1,00,000, 9% debentures at a premium of 5%) | |||||
Debenture Application and Allotment A/c | Dr. | 1,05,000 | |||
To 9% Debentures A/c
|
1,00,000 | ||||
To Securities Premium A/c
|
5,000 | ||||
(Debentures issued at premium, redeemable at par) | |||||
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 80,00,000 | |||
To Debenture Application and Allotment A/c
|
80,00,000 | ||||
(Applications received for Rs 80,00,000, 9% debentures at par) | |||||
Debenture Application and Allotment A/c | Dr. | 80,00,000 | |||
Loss on Issue of Debentures A/c | Dr. | 8,00,000 | |||
To 9% Debentures A/c
|
80,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
8,00,000 | ||||
(Debentures issued at par and redeemable at premium) | |||||
Page No 7.51:
Question 33:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 80,00,000 | |||
To Debenture Application and Allotment A/c
|
80,00,000 | ||||
(Applications received for Rs 80,00,000, 9% debentures at par) | |||||
Debenture Application and Allotment A/c | Dr. | 80,00,000 | |||
Loss on Issue of Debentures A/c | Dr. | 8,00,000 | |||
To 9% Debentures A/c
|
80,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
8,00,000 | ||||
(Debentures issued at par and redeemable at premium) | |||||
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
2014 | |||||
April 01 | Bank A/c | Dr. | 2,00,000 | ||
To Debenture Application A/c
|
2,00,000 | ||||
(Application money received on 50,000, 9% debentures @ Rs 4 per debenture) | |||||
Debenture Application A/c | Dr. | 2,00,000 | |||
To 9% Debentures A/c
|
2,00,000 | ||||
(Application money transferred to 9% Debentures Account) | |||||
Debenture Allotment A/c | Dr. | 3,00,000 | |||
Loss on Issue of Debentures A/c | Dr. | 50,000 | |||
To 9% Debentures A/c
|
3,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
50,000 | ||||
(Debentures issued at par and redeemable at premium) | |||||
Bank A/c | Dr. | 3,00,000 | |||
To Debenture Allotment A/c
|
3,00,000 | ||||
(Allotment money received on allotment @ Rs 6 per debenture) | |||||
Page No 7.51:
Question 34:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
2014 | |||||
April 01 | Bank A/c | Dr. | 2,00,000 | ||
To Debenture Application A/c
|
2,00,000 | ||||
(Application money received on 50,000, 9% debentures @ Rs 4 per debenture) | |||||
Debenture Application A/c | Dr. | 2,00,000 | |||
To 9% Debentures A/c
|
2,00,000 | ||||
(Application money transferred to 9% Debentures Account) | |||||
Debenture Allotment A/c | Dr. | 3,00,000 | |||
Loss on Issue of Debentures A/c | Dr. | 50,000 | |||
To 9% Debentures A/c
|
3,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
50,000 | ||||
(Debentures issued at par and redeemable at premium) | |||||
Bank A/c | Dr. | 3,00,000 | |||
To Debenture Allotment A/c
|
3,00,000 | ||||
(Allotment money received on allotment @ Rs 6 per debenture) | |||||
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 7,35,000 | |||
To Debenture Application and Allotment A/c
|
7,35,000 | ||||
(Applications received for 7,000, 10% debentures of Rs 100 each at a premium of 5%) | |||||
Debenture Application and Allotment A/c | Dr. | 7,35,000 | |||
Loss on Issue of Debentures A/c | Dr. | 70,000 | |||
To 10% Debentures A/c
|
7,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
70,000 | ||||
To Securities Premium A/c
|
35,000 | ||||
(Debentures issued at premium and redeemable at premium) | |||||
Page No 7.51:
Question 35:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Bank A/c | Dr. | 7,35,000 | |||
To Debenture Application and Allotment A/c
|
7,35,000 | ||||
(Applications received for 7,000, 10% debentures of Rs 100 each at a premium of 5%) | |||||
Debenture Application and Allotment A/c | Dr. | 7,35,000 | |||
Loss on Issue of Debentures A/c | Dr. | 70,000 | |||
To 10% Debentures A/c
|
7,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
70,000 | ||||
To Securities Premium A/c
|
35,000 | ||||
(Debentures issued at premium and redeemable at premium) | |||||
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) |
|
|
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(e) |
Bank A/c |
Dr. |
|
44,000 |
|
|
To 12% Debenture Application A/c |
|
|
44,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
44,000 |
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
4,000 |
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
To Securities Premium A/c | 4,000 | ||||
|
To Premium on Redemption A/c |
|
|
4,000 |
|
|
(Debentures of Rs 40,000 issued at 10% premium with the term redeemable at 110%) |
|
|
|
|
|
|
|
|
|
Page No 7.51:
Question 36:
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) |
|
|
|
|
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
(e) |
Bank A/c |
Dr. |
|
44,000 |
|
|
To 12% Debenture Application A/c |
|
|
44,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
44,000 |
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
4,000 |
|
|
To 12% Debentures A/c |
|
|
40,000 |
|
To Securities Premium A/c | 4,000 | ||||
|
To Premium on Redemption A/c |
|
|
4,000 |
|
|
(Debentures of Rs 40,000 issued at 10% premium with the term redeemable at 110%) |
|
|
|
|
|
|
|
|
|
Answer:
Books of XYZ Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2016 |
|
|
|
|
|
April 01 |
Bank A/c |
Dr. |
|
5,00,000 |
|
|
To Debenture Application A/c |
|
|
|
5,00,000 |
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
April 01 |
Debenture Application A/c |
Dr. |
|
5,00,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
To 10% Debentures A/c |
|
|
|
5,00,000 |
|
To Premium on Redemption A/c |
|
|
|
1,00,000 |
|
(5,000 Debentures of Rs 100 each issued at par with the term repayable at a premium of 20%) |
|
|
|
|
2016 |
|
|
|
|
|
Sept. 30 |
Interest on Debentures A/c |
Dr. |
|
25,000 |
|
|
To Debentureholders’ A/c |
|
|
|
22,500 |
To Income Tax Payable A/c | 2,500 | ||||
|
(Interest due on 10% Debentures) |
|
|
|
|
|
|
|
|
|
|
Sept. 30 |
Debentureholders’ A/c |
Dr. |
|
22,500 |
|
|
To Bank A/c |
|
|
|
22,500 |
|
(Interest on debentures paid to debenture holders) |
|
|
|
|
Sept. 30 | Income Tax Payable A/c | Dr. | 2,500 | ||
To Bank A/c | 2,500 | ||||
(Payment of tax on interest on debentures) | |||||
2017 |
|
|
|
|
|
March 31 |
Interest on Debentures A/c |
Dr. |
|
25,000 |
|
|
To Debentureholders’ A/c |
|
|
|
22,500 |
To Income Tax Payable A/c | 2,500 | ||||
|
(Interest due on 10% Debentures) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Debentureholders’ A/c |
Dr. |
|
22,500 |
|
|
To Bank A/c |
|
|
|
22,500 |
|
(Debenture Interest paid to Debenture holders) |
|
|
|
|
March 31 | Income Tax Payable A/c | Dr. | 2,500 | ||
To Bank A/c | 2,500 | ||||
(Payment of tax on interest on debentures) | |||||
March 31 |
Statement of P&L |
Dr. |
|
50,000 |
|
|
To Interest on Debentures A/c |
|
|
|
50,000 |
|
(Interest on debentures transferred to Profit and Loss Account) |
|
|
|
|
|
|
|
|
|
|
Working Note:
Interest on Debentures (for half year) =
Page No 7.52:
Question 37:
Books of XYZ Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2016 |
|
|
|
|
|
April 01 |
Bank A/c |
Dr. |
|
5,00,000 |
|
|
To Debenture Application A/c |
|
|
|
5,00,000 |
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
April 01 |
Debenture Application A/c |
Dr. |
|
5,00,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
To 10% Debentures A/c |
|
|
|
5,00,000 |
|
To Premium on Redemption A/c |
|
|
|
1,00,000 |
|
(5,000 Debentures of Rs 100 each issued at par with the term repayable at a premium of 20%) |
|
|
|
|
2016 |
|
|
|
|
|
Sept. 30 |
Interest on Debentures A/c |
Dr. |
|
25,000 |
|
|
To Debentureholders’ A/c |
|
|
|
22,500 |
To Income Tax Payable A/c | 2,500 | ||||
|
(Interest due on 10% Debentures) |
|
|
|
|
|
|
|
|
|
|
Sept. 30 |
Debentureholders’ A/c |
Dr. |
|
22,500 |
|
|
To Bank A/c |
|
|
|
22,500 |
|
(Interest on debentures paid to debenture holders) |
|
|
|
|
Sept. 30 | Income Tax Payable A/c | Dr. | 2,500 | ||
To Bank A/c | 2,500 | ||||
(Payment of tax on interest on debentures) | |||||
2017 |
|
|
|
|
|
March 31 |
Interest on Debentures A/c |
Dr. |
|
25,000 |
|
|
To Debentureholders’ A/c |
|
|
|
22,500 |
To Income Tax Payable A/c | 2,500 | ||||
|
(Interest due on 10% Debentures) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Debentureholders’ A/c |
Dr. |
|
22,500 |
|
|
To Bank A/c |
|
|
|
22,500 |
|
(Debenture Interest paid to Debenture holders) |
|
|
|
|
March 31 | Income Tax Payable A/c | Dr. | 2,500 | ||
To Bank A/c | 2,500 | ||||
(Payment of tax on interest on debentures) | |||||
March 31 |
Statement of P&L |
Dr. |
|
50,000 |
|
|
To Interest on Debentures A/c |
|
|
|
50,000 |
|
(Interest on debentures transferred to Profit and Loss Account) |
|
|
|
|
|
|
|
|
|
|
Working Note:
Interest on Debentures (for half year) =
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
2016 |
|
|
|
|
|
Apr.01 |
Bank A/c (15,00090) |
Dr. |
|
13,50,000 |
|
|
To Debenture Application and Allotment A/c |
|
|
|
13,50,000 |
|
(Received application money on Debenture) |
|
|
|
|
|
|
|
|
|
|
Apr.01 |
Debenture Application and Allotment A/c |
Dr. |
|
13,50,000 |
|
|
Discount on Issue of Debenture A/c (10,00010) |
Dr. |
|
1,00,000 |
|
|
Loss on Issue of Debenture A/c (10,00010) |
Dr. |
|
1,00,000 |
|
|
To 10% Debentures A/c (10,000100) |
|
|
|
10,00,000 |
|
To Premium on redemption of Debentures A/c (10,00010) |
|
|
|
1,00,000 |
|
To Bank A/c (5,00090) |
|
|
|
4,50,000 |
|
(Application money transferred to Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
Sep.30 |
Debentures Interest A/c |
Dr. |
|
50,000 |
|
|
To Debenture Holders’ A/c |
|
|
|
45,000 |
|
To TDS Payable A/c |
|
|
|
5,000 |
|
(Interest due) |
|
|
|
|
|
|
|
|
|
|
Sep.30 |
Debenture Holders’ A/c |
Dr. |
|
45,000 |
|
|
TDS Payable A/c |
Dr. |
|
5,000 |
|
|
To Bank A/c |
|
|
|
50,000 |
|
(Interest paid) |
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
|
|
Mar.31 |
Debentures Interest A/c |
Dr. |
|
50,000 |
|
|
To Debenture Holders’ A/c |
|
|
|
45,000 |
|
To TDS Payable A/c |
|
|
|
5,000 |
|
(Interest due) |
|
|
|
|
|
|
|
|
|
|
Mar.31 |
Debenture Holders’ A/c |
Dr. |
|
45,000 |
|
|
TDS Payable A/c |
Dr. |
|
5,000 |
|
|
To Bank A/c |
|
|
50,000 |
|
|
(Interest paid) |
|
|
|
|
|
|
|
|
|
|
Mar.31 |
Statement of P&L A/c |
Dr. |
|
1,00,000 |
|
|
To Debentures interest A/c |
|
|
1,00,000 |
|
|
(Interest transferred to P&L) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10% Debentures Account |
|||||||||
Dr. |
|
Cr. |
|||||||
Date |
Particulars |
J.F. |
Amount (Rs) |
Date |
Particulars |
J.F. |
Amount (Rs) |
||
2017 |
|
|
|
2016 |
|
|
|
||
Mar.31 |
Balance c/d |
|
10,00,000 |
Apr.01 |
Bank A/c |
|
9,00,000 |
||
|
|
|
|
|
Discount on issue of Debentures A/c |
|
1,00,000 |
||
|
|
|
|
|
|
|
|
||
|
|
|
10,00,000 |
|
|
|
10,00,000 |
||
|
|
|
|
|
|
|
|
Page No 7.52:
Question 38:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
2016 |
|
|
|
|
|
Apr.01 |
Bank A/c (15,00090) |
Dr. |
|
13,50,000 |
|
|
To Debenture Application and Allotment A/c |
|
|
|
13,50,000 |
|
(Received application money on Debenture) |
|
|
|
|
|
|
|
|
|
|
Apr.01 |
Debenture Application and Allotment A/c |
Dr. |
|
13,50,000 |
|
|
Discount on Issue of Debenture A/c (10,00010) |
Dr. |
|
1,00,000 |
|
|
Loss on Issue of Debenture A/c (10,00010) |
Dr. |
|
1,00,000 |
|
|
To 10% Debentures A/c (10,000100) |
|
|
|
10,00,000 |
|
To Premium on redemption of Debentures A/c (10,00010) |
|
|
|
1,00,000 |
|
To Bank A/c (5,00090) |
|
|
|
4,50,000 |
|
(Application money transferred to Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
Sep.30 |
Debentures Interest A/c |
Dr. |
|
50,000 |
|
|
To Debenture Holders’ A/c |
|
|
|
45,000 |
|
To TDS Payable A/c |
|
|
|
5,000 |
|
(Interest due) |
|
|
|
|
|
|
|
|
|
|
Sep.30 |
Debenture Holders’ A/c |
Dr. |
|
45,000 |
|
|
TDS Payable A/c |
Dr. |
|
5,000 |
|
|
To Bank A/c |
|
|
|
50,000 |
|
(Interest paid) |
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
|
|
Mar.31 |
Debentures Interest A/c |
Dr. |
|
50,000 |
|
|
To Debenture Holders’ A/c |
|
|
|
45,000 |
|
To TDS Payable A/c |
|
|
|
5,000 |
|
(Interest due) |
|
|
|
|
|
|
|
|
|
|
Mar.31 |
Debenture Holders’ A/c |
Dr. |
|
45,000 |
|
|
TDS Payable A/c |
Dr. |
|
5,000 |
|
|
To Bank A/c |
|
|
50,000 |
|
|
(Interest paid) |
|
|
|
|
|
|
|
|
|
|
Mar.31 |
Statement of P&L A/c |
Dr. |
|
1,00,000 |
|
|
To Debentures interest A/c |
|
|
1,00,000 |
|
|
(Interest transferred to P&L) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10% Debentures Account |
|||||||||
Dr. |
|
Cr. |
|||||||
Date |
Particulars |
J.F. |
Amount (Rs) |
Date |
Particulars |
J.F. |
Amount (Rs) |
||
2017 |
|
|
|
2016 |
|
|
|
||
Mar.31 |
Balance c/d |
|
10,00,000 |
Apr.01 |
Bank A/c |
|
9,00,000 |
||
|
|
|
|
|
Discount on issue of Debentures A/c |
|
1,00,000 |
||
|
|
|
|
|
|
|
|
||
|
|
|
10,00,000 |
|
|
|
10,00,000 |
||
|
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
2016 |
|
|
|
|
|
Apr.01 |
Bank A/c (20,000110) |
Dr. |
|
22,00,000 |
|
|
To Debenture Application and Allotment A/c |
|
|
|
22,00,000 |
|
(Received application money on Debenture) |
|
|
|
|
|
|
|
|
|
|
Apr.01 |
Debenture Application and Allotment A/c |
Dr. |
|
22,00,000 |
|
|
Loss on Issue of Debenture A/c (15,0005) |
Dr. |
|
75,000 |
|
|
To 10% Debentures A/c (15,000100) |
|
|
|
15,00,000 |
|
To Security Premium Reserve A/c (15,00010) |
|
|
|
1,50,000 |
|
To Premium on Redemption of Debentures A/c (15,0005) |
|
|
|
75,000 |
|
To Bank A/c (5,000110) |
|
|
|
5,50,000 |
|
(Application money transferred to Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
Sep.30 |
Debentures Interest A/c |
Dr. |
|
75,000 |
|
|
To Debenture Holders’ A/c |
|
|
|
60,000 |
|
To TDS Payable A/c |
|
|
|
15,000 |
|
(Interest due) |
|
|
|
|
|
|
|
|
|
|
Sep.30 |
Debenture Holders’ A/c |
Dr. |
|
60,000 |
|
|
TDS Payable A/c |
Dr. |
|
15,000 |
|
|
To Bank A/c |
|
|
|
75,000 |
|
(Interest paid) |
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
|
|
Mar.31 |
Debentures Interest A/c |
Dr. |
|
75,000 |
|
|
To Debenture Holders’ A/c |
|
|
|
60,000 |
|
To TDS Payable A/c |
|
|
|
15,000 |
|
(Interest due) |
|
|
|
|
|
|
|
|
|
|
Mar.31 |
Debenture Holders’ A/c |
Dr. |
|
60,000 |
|
|
TDS Payable A/c |
Dr. |
|
15,000 |
|
|
To Bank A/c |
|
|
|
75,000 |
|
(Interest paid) |
|
|
|
|
|
|
|
|
|
|
Mar.31 |
Statement of P&L A/c |
Dr. |
|
1,50,000 |
|
|
To Debentures Interest A/c |
|
|
1,50,000 |
|
|
(Interest transferred to P&L) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10% Debentures Account |
|||||||||
Dr. |
|
Cr. |
|||||||
Date |
Particulars |
J.F. |
Amount (Rs) |
Date |
Particulars |
J.F. |
Amount (Rs) |
||
2017 |
|
|
|
2016 |
|
|
|
||
Mar.31 |
Balance c/d |
|
15,00,000 |
Apr.01 |
Bank A/c |
|
15,00,000 |
||
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
|
|
15,00,000 |
|
|
|
15,00,000 |
||
|
|
|
|
|
|
|
|
Page No 7.52:
Question 39:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
2016 |
|
|
|
|
|
Apr.01 |
Bank A/c (20,000110) |
Dr. |
|
22,00,000 |
|
|
To Debenture Application and Allotment A/c |
|
|
|
22,00,000 |
|
(Received application money on Debenture) |
|
|
|
|
|
|
|
|
|
|
Apr.01 |
Debenture Application and Allotment A/c |
Dr. |
|
22,00,000 |
|
|
Loss on Issue of Debenture A/c (15,0005) |
Dr. |
|
75,000 |
|
|
To 10% Debentures A/c (15,000100) |
|
|
|
15,00,000 |
|
To Security Premium Reserve A/c (15,00010) |
|
|
|
1,50,000 |
|
To Premium on Redemption of Debentures A/c (15,0005) |
|
|
|
75,000 |
|
To Bank A/c (5,000110) |
|
|
|
5,50,000 |
|
(Application money transferred to Debentures A/c) |
|
|
|
|
|
|
|
|
|
|
Sep.30 |
Debentures Interest A/c |
Dr. |
|
75,000 |
|
|
To Debenture Holders’ A/c |
|
|
|
60,000 |
|
To TDS Payable A/c |
|
|
|
15,000 |
|
(Interest due) |
|
|
|
|
|
|
|
|
|
|
Sep.30 |
Debenture Holders’ A/c |
Dr. |
|
60,000 |
|
|
TDS Payable A/c |
Dr. |
|
15,000 |
|
|
To Bank A/c |
|
|
|
75,000 |
|
(Interest paid) |
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
|
|
Mar.31 |
Debentures Interest A/c |
Dr. |
|
75,000 |
|
|
To Debenture Holders’ A/c |
|
|
|
60,000 |
|
To TDS Payable A/c |
|
|
|
15,000 |
|
(Interest due) |
|
|
|
|
|
|
|
|
|
|
Mar.31 |
Debenture Holders’ A/c |
Dr. |
|
60,000 |
|
|
TDS Payable A/c |
Dr. |
|
15,000 |
|
|
To Bank A/c |
|
|
|
75,000 |
|
(Interest paid) |
|
|
|
|
|
|
|
|
|
|
Mar.31 |
Statement of P&L A/c |
Dr. |
|
1,50,000 |
|
|
To Debentures Interest A/c |
|
|
1,50,000 |
|
|
(Interest transferred to P&L) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10% Debentures Account |
|||||||||
Dr. |
|
Cr. |
|||||||
Date |
Particulars |
J.F. |
Amount (Rs) |
Date |
Particulars |
J.F. |
Amount (Rs) |
||
2017 |
|
|
|
2016 |
|
|
|
||
Mar.31 |
Balance c/d |
|
15,00,000 |
Apr.01 |
Bank A/c |
|
15,00,000 |
||
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
|
|
15,00,000 |
|
|
|
15,00,000 |
||
|
|
|
|
|
|
|
|
Answer:
According to Section 52 of Companies Act, 2013, securities premium amount can be utilised for writing-off discount on issue of debentures. Thus, discount on issue of debentures will be written-off from the balance of Securities Premium Reserve Account. The Journal entry will be as follows:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Securities Premium A/c | Dr. | 10,000 | |||
To Discount on Issue of Debentures A/c
|
10,000 | ||||
(Discount on issue of debentures written-off from securities premium) | |||||
Page No 7.52:
Question 40:
According to Section 52 of Companies Act, 2013, securities premium amount can be utilised for writing-off discount on issue of debentures. Thus, discount on issue of debentures will be written-off from the balance of Securities Premium Reserve Account. The Journal entry will be as follows:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
Securities Premium A/c | Dr. | 10,000 | |||
To Discount on Issue of Debentures A/c
|
10,000 | ||||
(Discount on issue of debentures written-off from securities premium) | |||||
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
2016 | |||||
April 01 | Bank A/c | Dr. | 94,000 | ||
To Debenture Application and Allotment A/c
|
94,000 | ||||
(Applications received for Rs 1,00,000, 9% debentures at 6% discount) | |||||
Debenture Application and Allotment A/c | Dr. | 94,000 | |||
Loss on Issue of Debentures A/c | Dr. | 6,000 | |||
To 8% Debentures A/c
|
1,00,000 | ||||
(Debentures issued at discount and redeemable at par) | |||||
Statement of Profit and Loss | Dr. | 6,000 | |||
To Loss on Issue of Debentures A/c
|
6,000 | ||||
(Loss on issue of debentures written off) | |||||
Working Note:
Discount on Issue of Debentures =
Page No 7.52:
Question 41:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
2016 | |||||
April 01 | Bank A/c | Dr. | 94,000 | ||
To Debenture Application and Allotment A/c
|
94,000 | ||||
(Applications received for Rs 1,00,000, 9% debentures at 6% discount) | |||||
Debenture Application and Allotment A/c | Dr. | 94,000 | |||
Loss on Issue of Debentures A/c | Dr. | 6,000 | |||
To 8% Debentures A/c
|
1,00,000 | ||||
(Debentures issued at discount and redeemable at par) | |||||
Statement of Profit and Loss | Dr. | 6,000 | |||
To Loss on Issue of Debentures A/c
|
6,000 | ||||
(Loss on issue of debentures written off) | |||||
Working Note:
Discount on Issue of Debentures =
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
2016 | |||||
Jan. 01 | Bank A/c | Dr. | 6,00,000 | ||
To Debenture Application and Allotment A/c
|
6,00,000 | ||||
(Applications received for Rs 6,00,000, 8% debentures) | |||||
Debenture Application and Allotment A/c | Dr. | 6,00,000 | |||
Loss on Issue of Debentures A/c | Dr. | 30,000 | |||
To 8% Debentures A/c
|
6,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
30,000 | ||||
(Debentures issued at par and redeemable at premium) | |||||
Securities Premium Reserve A/c | Dr. | 10,000 | |||
Statement of Profit and Loss | Dr. | 20,000 | |||
To Loss on Issue of Debentures A/c
|
30,000 | ||||
(Loss on issue of debentures written off) | |||||
Page No 7.52:
Question 42:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
2016 | |||||
Jan. 01 | Bank A/c | Dr. | 6,00,000 | ||
To Debenture Application and Allotment A/c
|
6,00,000 | ||||
(Applications received for Rs 6,00,000, 8% debentures) | |||||
Debenture Application and Allotment A/c | Dr. | 6,00,000 | |||
Loss on Issue of Debentures A/c | Dr. | 30,000 | |||
To 8% Debentures A/c
|
6,00,000 | ||||
To Premium on Redemption of Debentures A/c
|
30,000 | ||||
(Debentures issued at par and redeemable at premium) | |||||
Securities Premium Reserve A/c | Dr. | 10,000 | |||
Statement of Profit and Loss | Dr. | 20,000 | |||
To Loss on Issue of Debentures A/c
|
30,000 | ||||
(Loss on issue of debentures written off) | |||||
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
|
Security Premium Reserve A/c |
Dr. |
|
15,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
15,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
Note: The above entry will be passed for every year for 5 years.
Page No 7.52:
Question 43:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
|
Security Premium Reserve A/c |
Dr. |
|
15,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
15,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
Note: The above entry will be passed for every year for 5 years.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
Year 1 |
Security Premium Reserve A/c |
Dr. |
|
30,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
|
Year 2 |
Security Premium Reserve A/c |
Dr. |
|
20,000 |
|
|
Statement of Profit & Loss A/c |
Dr. |
|
10,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
|
Year 3 |
Statement of Profit & Loss A/c |
Dr. |
|
30,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
Note: Last entry will be passed for next two remaining years.
Page No 7.53:
Question 44:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
Year 1 |
Security Premium Reserve A/c |
Dr. |
|
30,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
|
Year 2 |
Security Premium Reserve A/c |
Dr. |
|
20,000 |
|
|
Statement of Profit & Loss A/c |
Dr. |
|
10,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
|
Year 3 |
Statement of Profit & Loss A/c |
Dr. |
|
30,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
Note: Last entry will be passed for next two remaining years.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Bank A/c (10,000 100) |
Dr. |
|
10,00,000 |
|
|
To Debenture Application & Allotment A/c |
|
|
|
10,00,000 |
|
(Received application money on 10,000 debentures) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application & Allotment A/c |
Dr. |
|
10,00,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
To 9% Debentures A/c (10,000 100) |
|
|
|
10,00,000 |
|
To Premium on Redemption of Debentures A/c |
|
|
|
1,00,000 |
|
(10,000, 9% Debentures of Rs 100 each issued at par and redeemable at premium of 10%) |
|
|
|
|
|
|
|
|
|
|
|
Statement of Profit & Loss A/c |
Dr. |
|
20,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
20,000 |
|
( Loss on issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
Working Notes:
Note: Last entry would be repeated every year for coming 4 years.
Page No 7.53:
Question 45:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Bank A/c (10,000 100) |
Dr. |
|
10,00,000 |
|
|
To Debenture Application & Allotment A/c |
|
|
|
10,00,000 |
|
(Received application money on 10,000 debentures) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application & Allotment A/c |
Dr. |
|
10,00,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
To 9% Debentures A/c (10,000 100) |
|
|
|
10,00,000 |
|
To Premium on Redemption of Debentures A/c |
|
|
|
1,00,000 |
|
(10,000, 9% Debentures of Rs 100 each issued at par and redeemable at premium of 10%) |
|
|
|
|
|
|
|
|
|
|
|
Statement of Profit & Loss A/c |
Dr. |
|
20,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
20,000 |
|
( Loss on issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
Working Notes:
Note: Last entry would be repeated every year for coming 4 years.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
|
Statement of Profit & Loss A/c |
Dr. |
|
30,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
Note: This entry will be passed for next two years.
Loss on Issue of Debentures Account |
||||||
Dr. |
Cr. |
|||||
Date |
Particulars |
Amount (Rs) |
Date |
Particulars |
Amount (Rs) |
|
|
|
|
|
|
|
|
Year 1 |
8% Debentures A/c |
90,000 |
Year 1 |
Statement of Profit & Loss A/c |
30,000 |
|
|
|
|
|
Balance c/d |
60,000 |
|
|
|
90,000 |
|
|
90,000 |
|
Year 2 |
Balance b/d |
60,000 |
Year 2 |
Statement of Profit & Loss A/c |
30,000 |
|
|
|
|
|
Balance c/d |
30,000 |
|
|
|
60,000 |
|
|
60,000 |
|
Year 3 |
Balance b/d |
30,000 |
Year 3 |
Statement of Profit & Loss A/c |
30,000 |
|
|
|
|
|
|
|
|
|
|
30,000 |
|
|
30,000 |
|
|
|
|
|
|
|
Page No 7.53:
Question 46:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
|
Statement of Profit & Loss A/c |
Dr. |
|
30,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
Note: This entry will be passed for next two years.
Loss on Issue of Debentures Account |
||||||
Dr. |
Cr. |
|||||
Date |
Particulars |
Amount (Rs) |
Date |
Particulars |
Amount (Rs) |
|
|
|
|
|
|
|
|
Year 1 |
8% Debentures A/c |
90,000 |
Year 1 |
Statement of Profit & Loss A/c |
30,000 |
|
|
|
|
|
Balance c/d |
60,000 |
|
|
|
90,000 |
|
|
90,000 |
|
Year 2 |
Balance b/d |
60,000 |
Year 2 |
Statement of Profit & Loss A/c |
30,000 |
|
|
|
|
|
Balance c/d |
30,000 |
|
|
|
60,000 |
|
|
60,000 |
|
Year 3 |
Balance b/d |
30,000 |
Year 3 |
Statement of Profit & Loss A/c |
30,000 |
|
|
|
|
|
|
|
|
|
|
30,000 |
|
|
30,000 |
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
Year 1 |
Security Premium Reserve A/c |
Dr. |
|
30,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
|
Year 2 |
Security Premium Reserve A/c |
Dr. |
|
30,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
|
Year 3 |
Security Premium Reserve A/c |
Dr. |
|
30,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
|
Year 4 |
Security Premium Reserve A/c |
Dr. |
|
10,000 |
|
|
Statement of Profit & Loss A/c |
Dr. |
|
20,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
|
Year 5 |
Statement of Profit & Loss A/c |
Dr. |
|
30,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
Loss on Issue of Debentures Account |
||||||
Dr. |
Cr. |
|||||
Date |
Particulars |
Amount (Rs) |
Date |
Particulars |
Amount (Rs) |
|
|
|
|
|
|
|
|
Year 1 |
7% Debentures A/c |
1,50,000 |
Year 1 |
Security Premium Reserve A/c |
30,000 |
|
|
|
|
|
Balance c/d |
1,20,000 |
|
|
|
1,50,000 |
|
|
1,50,000 |
|
Year 2 |
Balance b/d |
1,20,000 |
Year 2 |
Security Premium Reserve A/c |
30,000 |
|
|
|
|
|
Balance c/d |
90,000 |
|
|
|
1,20,000 |
|
|
1,20,000 |
|
Year 3 |
Balance b/d |
90,000 |
Year 3 |
Security Premium Reserve A/c |
30,000 |
|
|
|
|
|
Balance c/d |
60,000 |
|
|
|
90,000 |
|
|
90,000 |
|
Year 4 |
Balance b/d |
60,000 |
Year 4 |
Security Premium Reserve A/c |
10,000 |
|
|
|
|
|
Statement of Profit & Loss A/c |
20,000 |
|
|
|
|
|
Balance c/d |
30,000 |
|
|
|
60,000 |
|
|
60,000 |
|
Year 5 |
Balance b/d |
30,000 |
Year 5 |
Statement of Profit & Loss A/c |
30,000 |
|
|
|
|
|
|
|
|
|
|
30,000 |
|
|
30,000 |
|
|
|
|
|
|
|
|
Working Note:
Page No 7.53:
Question 47:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
|
|
|
|
|
Year 1 |
Security Premium Reserve A/c |
Dr. |
|
30,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
|
Year 2 |
Security Premium Reserve A/c |
Dr. |
|
30,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
|
Year 3 |
Security Premium Reserve A/c |
Dr. |
|
30,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
|
Year 4 |
Security Premium Reserve A/c |
Dr. |
|
10,000 |
|
|
Statement of Profit & Loss A/c |
Dr. |
|
20,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
|
Year 5 |
Statement of Profit & Loss A/c |
Dr. |
|
30,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
30,000 |
|
(Loss on Issue of Debentures written off) |
|
|
|
|
|
|
|
|
|
Loss on Issue of Debentures Account |
||||||
Dr. |
Cr. |
|||||
Date |
Particulars |
Amount (Rs) |
Date |
Particulars |
Amount (Rs) |
|
|
|
|
|
|
|
|
Year 1 |
7% Debentures A/c |
1,50,000 |
Year 1 |
Security Premium Reserve A/c |
30,000 |
|
|
|
|
|
Balance c/d |
1,20,000 |
|
|
|
1,50,000 |
|
|
1,50,000 |
|
Year 2 |
Balance b/d |
1,20,000 |
Year 2 |
Security Premium Reserve A/c |
30,000 |
|
|
|
|
|
Balance c/d |
90,000 |
|
|
|
1,20,000 |
|
|
1,20,000 |
|
Year 3 |
Balance b/d |
90,000 |
Year 3 |
Security Premium Reserve A/c |
30,000 |
|
|
|
|
|
Balance c/d |
60,000 |
|
|
|
90,000 |
|
|
90,000 |
|
Year 4 |
Balance b/d |
60,000 |
Year 4 |
Security Premium Reserve A/c |
10,000 |
|
|
|
|
|
Statement of Profit & Loss A/c |
20,000 |
|
|
|
|
|
Balance c/d |
30,000 |
|
|
|
60,000 |
|
|
60,000 |
|
Year 5 |
Balance b/d |
30,000 |
Year 5 |
Statement of Profit & Loss A/c |
30,000 |
|
|
|
|
|
|
|
|
|
|
30,000 |
|
|
30,000 |
|
|
|
|
|
|
|
|
Working Note:
Answer:
Balance Sheet
as at March 31, 2017
|
||||
Particulars
|
Note No.
|
Amount
(Rs)
|
||
|
|
|
||
II Assets
|
|
|
||
1. Non-Current Assets
|
|
|
||
a. Other Non-Current Assets
|
1
|
96,000
|
||
2. Current Assets
|
|
|
||
a. Other Current Assets
|
2
|
32,000
|
||
Total
|
|
1,28,000
|
||
|
|
|
NOTES TO ACCOUNTS |
||||||
Note No.
|
Particulars
|
Amount
(Rs)
|
||||
1.
|
Other Non-Current Assets
|
|
||||
|
Loss on issue of Debentures
|
1,28,000
|
|
|||
|
Less: Shown as Other Current Assets
|
32,000
|
96,000
|
|||
|
(To the extent to be written off after 12 months from the date of Balance sheet)
|
|
||||
2.
|
Other Current Assets
|
|
||||
|
Loss on issue of Debentures
|
32,000
|
||||
|
(To the extent to be written off within 12 months from the date of Balance sheet)
|
|
||||
|
|
|
Page No 7.53:
Question 48:
Balance Sheet
as at March 31, 2017
|
||||
Particulars
|
Note No.
|
Amount
(Rs)
|
||
|
|
|
||
II Assets
|
|
|
||
1. Non-Current Assets
|
|
|
||
a. Other Non-Current Assets
|
1
|
96,000
|
||
2. Current Assets
|
|
|
||
a. Other Current Assets
|
2
|
32,000
|
||
Total
|
|
1,28,000
|
||
|
|
|
NOTES TO ACCOUNTS |
||||||
Note No.
|
Particulars
|
Amount
(Rs)
|
||||
1.
|
Other Non-Current Assets
|
|
||||
|
Loss on issue of Debentures
|
1,28,000
|
|
|||
|
Less: Shown as Other Current Assets
|
32,000
|
96,000
|
|||
|
(To the extent to be written off after 12 months from the date of Balance sheet)
|
|
||||
2.
|
Other Current Assets
|
|
||||
|
Loss on issue of Debentures
|
32,000
|
||||
|
(To the extent to be written off within 12 months from the date of Balance sheet)
|
|
||||
|
|
|
Answer:
Balance Sheet as at March 31, 2016 |
|
|||||
Particulars |
Note No. |
Amount (Rs) |
|
|||
|
|
|
|
|||
II Assets |
|
|
|
|||
1. Non-Current Assets |
|
|
|
|||
a. Other Non-Current Assets |
|
1,20,000 |
|
|||
2. Current Assets |
|
|
|
|||
a. Other Current Assets |
|
40,000 |
|
|||
Total |
|
1,60,000 |
|
|||
|
|
|
|
|||
NOTES TO ACCOUNTS |
||||||
Note No. |
Particulars |
Amount (Rs) |
||||
1. |
Other Non-current Assets |
|
||||
|
Loss on issue of Debentures |
1,60,000 |
|
|||
|
Less: Shown as Other Current Assets |
40,000 |
1,20,000 |
|||
|
(To the extent to be written off after 12 months from the date of Balance sheet ) |
|
||||
2. |
Other Current Assets |
|
||||
|
Loss on issue of Debentures |
40,000 |
||||
|
(To the extent to be written off within 12 months from the date of Balance sheet ) |
|
||||
|
|
|
||||
Balance Sheet as at March 31, 2017 |
|
|||||
Particulars |
Note No. |
Amount (Rs) |
|
|||
|
|
|
|
|||
II Assets |
|
|
|
|||
1. Non-Current Assets |
|
|
|
|||
a. Other Non-Current Assets |
|
80,000 |
|
|||
2. Current Assets |
|
|
|
|||
a. Other Current Assets |
|
40,000 |
|
|||
Total |
|
1,20,000 |
|
|||
|
|
|
|
|||
NOTES TO ACCOUNTS |
||||||
Note No. |
Particulars |
Amount (Rs) |
||||
1. |
Other Non-current Assets |
|
||||
|
Loss on issue of Debentures |
1,20,000 |
|
|||
|
Less: Shown as Other Current Assets |
40,000 |
80,000 |
|||
|
(To the extent to be written off after 12 months from the date of Balance sheet ) |
|
||||
3 |
Other Current Assets |
|
||||
|
Loss on issue of Debentures |
40,000 |
||||
|
(To the extent to be written off within 12 months from the date of Balance sheet ) |
|
||||
|
|
|
Page No 7.53:
Question 49:
Balance Sheet as at March 31, 2016 |
|
|||||
Particulars |
Note No. |
Amount (Rs) |
|
|||
|
|
|
|
|||
II Assets |
|
|
|
|||
1. Non-Current Assets |
|
|
|
|||
a. Other Non-Current Assets |
|
1,20,000 |
|
|||
2. Current Assets |
|
|
|
|||
a. Other Current Assets |
|
40,000 |
|
|||
Total |
|
1,60,000 |
|
|||
|
|
|
|
|||
NOTES TO ACCOUNTS |
||||||
Note No. |
Particulars |
Amount (Rs) |
||||
1. |
Other Non-current Assets |
|
||||
|
Loss on issue of Debentures |
1,60,000 |
|
|||
|
Less: Shown as Other Current Assets |
40,000 |
1,20,000 |
|||
|
(To the extent to be written off after 12 months from the date of Balance sheet ) |
|
||||
2. |
Other Current Assets |
|
||||
|
Loss on issue of Debentures |
40,000 |
||||
|
(To the extent to be written off within 12 months from the date of Balance sheet ) |
|
||||
|
|
|
||||
Balance Sheet as at March 31, 2017 |
|
|||||
Particulars |
Note No. |
Amount (Rs) |
|
|||
|
|
|
|
|||
II Assets |
|
|
|
|||
1. Non-Current Assets |
|
|
|
|||
a. Other Non-Current Assets |
|
80,000 |
|
|||
2. Current Assets |
|
|
|
|||
a. Other Current Assets |
|
40,000 |
|
|||
Total |
|
1,20,000 |
|
|||
|
|
|
|
|||
NOTES TO ACCOUNTS |
||||||
Note No. |
Particulars |
Amount (Rs) |
||||
1. |
Other Non-current Assets |
|
||||
|
Loss on issue of Debentures |
1,20,000 |
|
|||
|
Less: Shown as Other Current Assets |
40,000 |
80,000 |
|||
|
(To the extent to be written off after 12 months from the date of Balance sheet ) |
|
||||
3 |
Other Current Assets |
|
||||
|
Loss on issue of Debentures |
40,000 |
||||
|
(To the extent to be written off within 12 months from the date of Balance sheet ) |
|
||||
|
|
|
Answer:
Balance Sheet as at March 31, 2016 |
||
Particulars |
Note No. |
Amount (Rs) |
II Assets |
|
|
1. Non-Current Assets |
|
|
|
|
1,20,000 |
2. Current Assets |
|
|
|
|
40,000 |
Total |
|
|
|
|
|
NOTES TO ACCOUNTS |
|||
Note No. |
Particulars |
Amount (Rs) |
|
1. |
Other Non-current Assets |
|
|
|
Loss on issue of Debentures |
1,60,000 |
|
|
Less: Shown as Other Current Assets |
40,000 |
1,20,000 |
|
(To the extent to be written off after 12 months from the date of Balance sheet ) |
|
|
2. |
Other Current Assets |
|
|
|
Loss on issue of Debentures |
40,000 |
|
|
(To the extent to be written off within 12 months from the date of Balance sheet ) |
|
|
|
|
|
Balance Sheet as at March 31, 2017 |
||
Particulars |
Note No. |
Amount (Rs) |
II Assets |
|
|
1. Non-Current Assets |
|
|
|
|
80,000 |
2. Current Assets |
|
|
|
|
40,000 |
Total |
|
|
NOTES TO ACCOUNTS |
|||
Note No. |
Particulars |
Amount (Rs) |
|
1. |
Other Non-Current Assets |
|
|
|
Loss on issue of Debentures 1,20,000 |
|
|
|
Less: Shown as Other Current Assets |
40,000 |
80,000 |
|
(To the extent to be written off after 12 months from the date of Balance sheet ) |
|
|
2. |
Other Current Assets |
|
|
|
Loss on issue of Debentures |
40,000 |
|
|
(To the extent to be written off within 12 months from the date of Balance sheet ) |
|
|
|
|
|
Page No 7.53:
Question 50:
Balance Sheet as at March 31, 2016 |
||
Particulars |
Note No. |
Amount (Rs) |
II Assets |
|
|
1. Non-Current Assets |
|
|
|
|
1,20,000 |
2. Current Assets |
|
|
|
|
40,000 |
Total |
|
|
|
|
|
NOTES TO ACCOUNTS |
|||
Note No. |
Particulars |
Amount (Rs) |
|
1. |
Other Non-current Assets |
|
|
|
Loss on issue of Debentures |
1,60,000 |
|
|
Less: Shown as Other Current Assets |
40,000 |
1,20,000 |
|
(To the extent to be written off after 12 months from the date of Balance sheet ) |
|
|
2. |
Other Current Assets |
|
|
|
Loss on issue of Debentures |
40,000 |
|
|
(To the extent to be written off within 12 months from the date of Balance sheet ) |
|
|
|
|
|
Balance Sheet as at March 31, 2017 |
||
Particulars |
Note No. |
Amount (Rs) |
II Assets |
|
|
1. Non-Current Assets |
|
|
|
|
80,000 |
2. Current Assets |
|
|
|
|
40,000 |
Total |
|
|
NOTES TO ACCOUNTS |
|||
Note No. |
Particulars |
Amount (Rs) |
|
1. |
Other Non-Current Assets |
|
|
|
Loss on issue of Debentures 1,20,000 |
|
|
|
Less: Shown as Other Current Assets |
40,000 |
80,000 |
|
(To the extent to be written off after 12 months from the date of Balance sheet ) |
|
|
2. |
Other Current Assets |
|
|
|
Loss on issue of Debentures |
40,000 |
|
|
(To the extent to be written off within 12 months from the date of Balance sheet ) |
|
|
|
|
|
Answer:
Balance Sheet as at March 31, 2016 |
||
Particulars |
Note No. |
Amount (Rs) |
I. Liabilities |
|
|
1. Reserves & Surplus |
|
|
a. Securities Premium Reserve |
|
60,000 |
|
|
|
II Assets |
|
|
1. Non-Current Assets |
|
|
a. Other Non-Current Assets |
|
1,20,000 |
2. Current Assets |
|
|
a. Other Current Assets |
|
40,000 |
Total |
|
|
NOTES TO ACCOUNTS |
|||
Note No. |
Particulars |
Amount (Rs) |
|
1. |
Other Non-current Assets |
|
|
|
Loss on issue of Debentures |
1,60,000 |
|
|
Less: Shown as Other Current Assets |
40,000 |
1,20,000 |
|
(To the extent to be written off after 12 months from the date of Balance sheet ) |
|
|
2. |
Other Current Assets |
|
|
|
Loss on issue of Debentures |
40,000 |
|
|
(To the extent to be written off within 12 months from the date of Balance sheet ) |
|
|
|
|
|
Balance Sheet as at March 31, 2017 |
||
Particulars |
Note No. |
Amount (Rs) |
I Liabilities | ||
1. Reserves & Surplus | ||
a. Statement of P&L | (20,000) | |
II Assets |
|
|
1. Non-Current Assets |
|
|
a. Other Non-Current Assets |
|
80,000 |
2. Current Assets |
|
|
b. Other Current Assets |
|
20,000 |
Total |
|
|
NOTES TO ACCOUNTS |
|||
Note No. |
Particulars |
Amount (Rs) |
|
1. | Reserves and Surplus | ||
Statement of P&L | (20,000) | ||
2. |
Other Non-current Assets |
|
|
|
Loss on issue of Debentures |
1,20,000 |
|
|
Less: Shown as Other Current Assets |
40,000 |
80,000 |
|
(To the extent to be written off after 12 months from the date of Balance sheet ) |
|
|
3. |
Other Current Assets |
|
|
|
Loss on issue of Debentures |
40,000 |
|
|
(To the extent to be written off within 12 months from the date of Balance sheet ) |
|
|
|
|
|
Page No 7.53:
Question 51:
Balance Sheet as at March 31, 2016 |
||
Particulars |
Note No. |
Amount (Rs) |
I. Liabilities |
|
|
1. Reserves & Surplus |
|
|
a. Securities Premium Reserve |
|
60,000 |
|
|
|
II Assets |
|
|
1. Non-Current Assets |
|
|
a. Other Non-Current Assets |
|
1,20,000 |
2. Current Assets |
|
|
a. Other Current Assets |
|
40,000 |
Total |
|
|
NOTES TO ACCOUNTS |
|||
Note No. |
Particulars |
Amount (Rs) |
|
1. |
Other Non-current Assets |
|
|
|
Loss on issue of Debentures |
1,60,000 |
|
|
Less: Shown as Other Current Assets |
40,000 |
1,20,000 |
|
(To the extent to be written off after 12 months from the date of Balance sheet ) |
|
|
2. |
Other Current Assets |
|
|
|
Loss on issue of Debentures |
40,000 |
|
|
(To the extent to be written off within 12 months from the date of Balance sheet ) |
|
|
|
|
|
Balance Sheet as at March 31, 2017 |
||
Particulars |
Note No. |
Amount (Rs) |
I Liabilities | ||
1. Reserves & Surplus | ||
a. Statement of P&L | (20,000) | |
II Assets |
|
|
1. Non-Current Assets |
|
|
a. Other Non-Current Assets |
|
80,000 |
2. Current Assets |
|
|
b. Other Current Assets |
|
20,000 |
Total |
|
|
NOTES TO ACCOUNTS |
|||
Note No. |
Particulars |
Amount (Rs) |
|
1. | Reserves and Surplus | ||
Statement of P&L | (20,000) | ||
2. |
Other Non-current Assets |
|
|
|
Loss on issue of Debentures |
1,20,000 |
|
|
Less: Shown as Other Current Assets |
40,000 |
80,000 |
|
(To the extent to be written off after 12 months from the date of Balance sheet ) |
|
|
3. |
Other Current Assets |
|
|
|
Loss on issue of Debentures |
40,000 |
|
|
(To the extent to be written off within 12 months from the date of Balance sheet ) |
|
|
|
|
|
Answer:
In the Books of Eay Kay Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
Beginning |
|
|
|
|
|
of the year |
Bank A/c |
Dr. |
|
6,25,000 |
|
|
To Debenture Application |
|
|
|
6,25,000 |
|
(Application money received for 12,500, 10% Debentures @ Rs 50) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
6,25,000 |
|
|
To 10% Debentures A/c |
|
|
|
5,00,000 |
|
To Debenture Allotment A/c |
|
|
|
1,25,000 |
|
(Amount transferred to 10% Debentures Account) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Allotment A/c (40 × 10,000) |
Dr. |
|
4,00,000 |
|
|
Loss on Issue of Debentures A/c (1,00,000 + 50,000) |
Dr. |
|
1,50,000 |
|
|
To 10% Debentures A/c (50 × 10,000) |
|
|
|
5,00,000 |
|
To Premium on Redemption of Debentures A/c (5 × 10,000) |
|
|
|
50,000 |
|
(Allotment money due on 10,000 Debentures issued at Rs 90 and redeemable at Rs 105) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (4,00,000 – 1,25,000) |
Dr. |
|
2,75,000 |
|
|
To Debenture Allotment A/c (4,00,000 – 1,25,000) |
|
|
|
2,75,000 |
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
Plant and Machinery A/c |
Dr. |
|
11,00,000 |
|
|
To Vendor’s A/c |
|
|
|
11,00,000 |
|
(Plant and Machinery purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor’s A/c |
Dr. |
|
11,00,000 |
|
|
To 10% Debentures A/c |
|
|
|
10,00,000 |
|
To Securities Premium Reserve A/c |
|
|
|
1,00,000 |
|
(Debentures issued to vendor @ Rs 110 each) |
|
|
|
|
|
|
|
|
|
|
Year End |
Securities Premium Reserve A/c |
Dr. |
|
1,00,000 |
|
|
Surplus, i.e. Balance in Statement of Profit and Loss |
|
|
50,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
1,50,000 |
|
(Loss on issue of debentures written off) |
|
|
|
|
|
|
|
|
|
Extract of Balance Sheet |
||
Particulars |
Note No. |
Figures at the end of reporting period |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
Reserves and Surplus |
1 |
(50,000) |
2. Non-Current Liabilities |
|
|
Long-term Borrowings |
2 |
20,50,000 |
|
|
|
Total |
|
20,00,000 |
|
|
|
II Assets |
|
|
1. Non-Current Assets |
|
|
Fixed Assets-Machinery |
3 |
11,00,000 |
2. Current Assets |
|
|
Cash and Cash Equivalents |
4 |
|
Total |
|
20,00,000 |
|
|
|
NOTES TO ACCOUNTS |
|||
Note No. |
Particulars |
Amount (Rs) |
|
1 |
Reserves and Surplus |
|
|
|
Securities Premium Reserve |
1,00,000 |
|
|
Less: Loss on Issue of Debentures |
(1,00,000) |
|
|
Surplus, i.e. Balance in Statement of Profit and Loss |
(50,000) |
|
|
|
(50,000) |
|
2 |
Long-term Borrowings |
|
|
|
20,000; 10% Debentures |
20,00,000 |
|
|
Premium on Redemption of Debentures |
50,000 |
|
|
|
20,50,000 |
|
3 |
Non-Current Assets |
|
|
|
Machinery |
11,00,000 |
|
|
|
|
|
4 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
9,00,000 |
|
|
|
|
Note: Entries related to Interest on Debentures have not been passed as was not required.
Page No 7.54:
Question 52:
In the Books of Eay Kay Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
Beginning |
|
|
|
|
|
of the year |
Bank A/c |
Dr. |
|
6,25,000 |
|
|
To Debenture Application |
|
|
|
6,25,000 |
|
(Application money received for 12,500, 10% Debentures @ Rs 50) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
6,25,000 |
|
|
To 10% Debentures A/c |
|
|
|
5,00,000 |
|
To Debenture Allotment A/c |
|
|
|
1,25,000 |
|
(Amount transferred to 10% Debentures Account) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Allotment A/c (40 × 10,000) |
Dr. |
|
4,00,000 |
|
|
Loss on Issue of Debentures A/c (1,00,000 + 50,000) |
Dr. |
|
1,50,000 |
|
|
To 10% Debentures A/c (50 × 10,000) |
|
|
|
5,00,000 |
|
To Premium on Redemption of Debentures A/c (5 × 10,000) |
|
|
|
50,000 |
|
(Allotment money due on 10,000 Debentures issued at Rs 90 and redeemable at Rs 105) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (4,00,000 – 1,25,000) |
Dr. |
|
2,75,000 |
|
|
To Debenture Allotment A/c (4,00,000 – 1,25,000) |
|
|
|
2,75,000 |
|
(Allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
Plant and Machinery A/c |
Dr. |
|
11,00,000 |
|
|
To Vendor’s A/c |
|
|
|
11,00,000 |
|
(Plant and Machinery purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor’s A/c |
Dr. |
|
11,00,000 |
|
|
To 10% Debentures A/c |
|
|
|
10,00,000 |
|
To Securities Premium Reserve A/c |
|
|
|
1,00,000 |
|
(Debentures issued to vendor @ Rs 110 each) |
|
|
|
|
|
|
|
|
|
|
Year End |
Securities Premium Reserve A/c |
Dr. |
|
1,00,000 |
|
|
Surplus, i.e. Balance in Statement of Profit and Loss |
|
|
50,000 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
1,50,000 |
|
(Loss on issue of debentures written off) |
|
|
|
|
|
|
|
|
|
Extract of Balance Sheet |
||
Particulars |
Note No. |
Figures at the end of reporting period |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
Reserves and Surplus |
1 |
(50,000) |
2. Non-Current Liabilities |
|
|
Long-term Borrowings |
2 |
20,50,000 |
|
|
|
Total |
|
20,00,000 |
|
|
|
II Assets |
|
|
1. Non-Current Assets |
|
|
Fixed Assets-Machinery |
3 |
11,00,000 |
2. Current Assets |
|
|
Cash and Cash Equivalents |
4 |
|
Total |
|
20,00,000 |
|
|
|
NOTES TO ACCOUNTS |
|||
Note No. |
Particulars |
Amount (Rs) |
|
1 |
Reserves and Surplus |
|
|
|
Securities Premium Reserve |
1,00,000 |
|
|
Less: Loss on Issue of Debentures |
(1,00,000) |
|
|
Surplus, i.e. Balance in Statement of Profit and Loss |
(50,000) |
|
|
|
(50,000) |
|
2 |
Long-term Borrowings |
|
|
|
20,000; 10% Debentures |
20,00,000 |
|
|
Premium on Redemption of Debentures |
50,000 |
|
|
|
20,50,000 |
|
3 |
Non-Current Assets |
|
|
|
Machinery |
11,00,000 |
|
|
|
|
|
4 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank |
9,00,000 |
|
|
|
|
Note: Entries related to Interest on Debentures have not been passed as was not required.
Answer:
In the Books of Gee Ess Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
2014 |
|
|
|
|
|
April 01 |
Computers A/c |
Dr. |
|
7,50,000 |
|
|
Office Furniture A/c |
Dr. |
|
2,50,000 |
|
|
To Vendor’s A/c |
|
|
|
10,00,000 |
|
(Computer and Office Furniture purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor’s A/c |
Dr. |
|
10,00,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
1,11,110 |
|
|
To 10% Debentures A/c |
|
|
|
11,11,100 |
|
To Bank A/c (Fraction settled through bank) |
|
|
|
10 |
|
(Debentures issued to vendor @ Rs 90 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
13,75,000 |
|
|
To Debenture Application & Allotment A/c |
|
|
|
13,75,000 |
|
(Application money received for 12,500, 8% Debentures @ Rs 110) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application & Allotment A/c |
Dr. |
|
13,75,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
To 8% Debentures A/c |
|
|
|
10,00,000 |
|
To Securities Premium Reserve A/c |
|
|
|
1,00,000 |
|
To Premium on Redemption of Debentures A/c |
|
|
|
1,00,000 |
|
To Bank A/c* |
|
|
|
2,75,000 |
|
(10% Debentures allotted to 10,000 Debenture-holders) |
|
|
|
|
|
|
|
|
|
|
Sept. 30 |
Deb. Interest A/c (11,11,100 × 10% × 6/12) + (10,00,000 × 8% × 6/12) |
Dr. |
|
95,555 |
|
|
To Debentureholders’ A/c |
|
|
|
95,555 |
|
(Interest on debentures payable at prescribed rates for six months) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
95,555 |
|
|
To Bank A/c |
|
|
|
95,555 |
|
(Interest on debentures paid) |
|
|
|
|
|
|
|
|
|
|
Year End |
Deb. Interest A/c (11,11,100 × 10% × 6/12) + (10,00,000 × 8% × 6/12) |
Dr. |
|
95,555 |
|
|
To Debentureholders’ A/c |
|
|
|
95,555 |
|
(Interest on debentures payable at prescribed rates for six months) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
95,555 |
|
|
To Bank A/c |
|
|
|
95,555 |
|
(Interest on debentures paid) |
|
|
|
|
|
|
|
|
|
|
|
Securities Premium Reserve A/c |
Dr. |
|
1,00,000 |
|
|
Surplus, i.e. Balance in Statement of Profit and Loss |
|
|
1,11,110 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
1,00,000 |
|
To Discount on Issue of debentures A/c |
|
|
|
1,11,110 |
|
(Loss on issue of debentures written off) |
|
|
|
|
|
|
|
|
|
|
|
Statement of Profit and Loss (95,555 + 95,555) |
Dr. |
|
1,91,110 |
|
|
To Debentures’ Interest A/c |
|
|
|
1,91,110 |
|
(Transfer of Debenture Interest to Statement of P&L) |
|
|
|
|
|
|
|
|
|
â
Particulars |
Note No. |
Figures at the end of reporting period |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
15,00,000 |
b. Reserves and Surplus |
2 |
(3,02,220) |
2. Non-Current Liabilities |
|
|
Long-term Borrowings |
3 |
22,11,100 |
|
|
|
Total |
|
34,08,880 |
|
|
|
II Assets |
|
|
1. Non-Current Assets |
|
|
Fixed Assets- Computer and Office Furniture |
3 |
10,00,000 |
2. Current Assets |
|
|
Cash and Cash Equivalents |
4 |
24,08,880 |
Total |
|
34,08,880 |
|
|
|
NOTES TO ACCOUNTS |
|||
Note No. |
Particulars |
Amount (Rs) |
|
1 |
Share Capital |
|
|
|
Authorised Capital |
|
|
|
2,00,000 shares of Rs 10 each |
20,00,000 |
|
|
Issued, Subscribed and Paid-up Capital |
|
|
|
1,50,00 shares of Rs 10 each |
15,00,000 |
|
|
|
|
|
2 |
Reserves and Surplus |
|
|
|
Securities Premium Reserve |
1,00,000 |
|
|
Less: Loss on Issue of Debentures |
(1,00,000) |
|
|
Statement of Profit and Loss (1,11,110 + 1,91,110) |
(3,02,220) |
|
|
|
(3,02,220) |
|
2 |
Long-term Borrowings |
|
|
|
11,111; 10% Debentures |
11,11,100 |
|
|
10,000; 8% Debentures |
10,00,000 |
|
|
Premium on Redemption of Debentures |
1,00,000 |
|
|
|
22,11,100 |
|
3 |
Non-Current Assets |
|
|
|
Computers |
7,50,000 |
|
|
Office Furniture |
2,50,000 |
|
|
|
10,00,000 |
|
|
|
|
|
4 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank (15,00,000 + 13,75,000 – 2,75,000 – 95,555, 95,555 – 10) |
24,08,880 |
|
|
|
|
*It has been provided that full amount is received with application accordingly excess amount received would be refunded.
Page No 7.54:
Question 53:
In the Books of Gee Ess Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
2014 |
|
|
|
|
|
April 01 |
Computers A/c |
Dr. |
|
7,50,000 |
|
|
Office Furniture A/c |
Dr. |
|
2,50,000 |
|
|
To Vendor’s A/c |
|
|
|
10,00,000 |
|
(Computer and Office Furniture purchased) |
|
|
|
|
|
|
|
|
|
|
|
Vendor’s A/c |
Dr. |
|
10,00,000 |
|
|
Discount on Issue of Debentures A/c |
Dr. |
|
1,11,110 |
|
|
To 10% Debentures A/c |
|
|
|
11,11,100 |
|
To Bank A/c (Fraction settled through bank) |
|
|
|
10 |
|
(Debentures issued to vendor @ Rs 90 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
13,75,000 |
|
|
To Debenture Application & Allotment A/c |
|
|
|
13,75,000 |
|
(Application money received for 12,500, 8% Debentures @ Rs 110) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application & Allotment A/c |
Dr. |
|
13,75,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
To 8% Debentures A/c |
|
|
|
10,00,000 |
|
To Securities Premium Reserve A/c |
|
|
|
1,00,000 |
|
To Premium on Redemption of Debentures A/c |
|
|
|
1,00,000 |
|
To Bank A/c* |
|
|
|
2,75,000 |
|
(10% Debentures allotted to 10,000 Debenture-holders) |
|
|
|
|
|
|
|
|
|
|
Sept. 30 |
Deb. Interest A/c (11,11,100 × 10% × 6/12) + (10,00,000 × 8% × 6/12) |
Dr. |
|
95,555 |
|
|
To Debentureholders’ A/c |
|
|
|
95,555 |
|
(Interest on debentures payable at prescribed rates for six months) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
95,555 |
|
|
To Bank A/c |
|
|
|
95,555 |
|
(Interest on debentures paid) |
|
|
|
|
|
|
|
|
|
|
Year End |
Deb. Interest A/c (11,11,100 × 10% × 6/12) + (10,00,000 × 8% × 6/12) |
Dr. |
|
95,555 |
|
|
To Debentureholders’ A/c |
|
|
|
95,555 |
|
(Interest on debentures payable at prescribed rates for six months) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
95,555 |
|
|
To Bank A/c |
|
|
|
95,555 |
|
(Interest on debentures paid) |
|
|
|
|
|
|
|
|
|
|
|
Securities Premium Reserve A/c |
Dr. |
|
1,00,000 |
|
|
Surplus, i.e. Balance in Statement of Profit and Loss |
|
|
1,11,110 |
|
|
To Loss on Issue of Debentures A/c |
|
|
|
1,00,000 |
|
To Discount on Issue of debentures A/c |
|
|
|
1,11,110 |
|
(Loss on issue of debentures written off) |
|
|
|
|
|
|
|
|
|
|
|
Statement of Profit and Loss (95,555 + 95,555) |
Dr. |
|
1,91,110 |
|
|
To Debentures’ Interest A/c |
|
|
|
1,91,110 |
|
(Transfer of Debenture Interest to Statement of P&L) |
|
|
|
|
|
|
|
|
|
â
Particulars |
Note No. |
Figures at the end of reporting period |
I. Equity and Liabilities |
|
|
1. Shareholders’ Funds |
|
|
a. Share Capital |
1 |
15,00,000 |
b. Reserves and Surplus |
2 |
(3,02,220) |
2. Non-Current Liabilities |
|
|
Long-term Borrowings |
3 |
22,11,100 |
|
|
|
Total |
|
34,08,880 |
|
|
|
II Assets |
|
|
1. Non-Current Assets |
|
|
Fixed Assets- Computer and Office Furniture |
3 |
10,00,000 |
2. Current Assets |
|
|
Cash and Cash Equivalents |
4 |
24,08,880 |
Total |
|
34,08,880 |
|
|
|
NOTES TO ACCOUNTS |
|||
Note No. |
Particulars |
Amount (Rs) |
|
1 |
Share Capital |
|
|
|
Authorised Capital |
|
|
|
2,00,000 shares of Rs 10 each |
20,00,000 |
|
|
Issued, Subscribed and Paid-up Capital |
|
|
|
1,50,00 shares of Rs 10 each |
15,00,000 |
|
|
|
|
|
2 |
Reserves and Surplus |
|
|
|
Securities Premium Reserve |
1,00,000 |
|
|
Less: Loss on Issue of Debentures |
(1,00,000) |
|
|
Statement of Profit and Loss (1,11,110 + 1,91,110) |
(3,02,220) |
|
|
|
(3,02,220) |
|
2 |
Long-term Borrowings |
|
|
|
11,111; 10% Debentures |
11,11,100 |
|
|
10,000; 8% Debentures |
10,00,000 |
|
|
Premium on Redemption of Debentures |
1,00,000 |
|
|
|
22,11,100 |
|
3 |
Non-Current Assets |
|
|
|
Computers |
7,50,000 |
|
|
Office Furniture |
2,50,000 |
|
|
|
10,00,000 |
|
|
|
|
|
4 |
Cash and Cash Equivalents |
|
|
|
Cash at Bank (15,00,000 + 13,75,000 – 2,75,000 – 95,555, 95,555 – 10) |
24,08,880 |
|
|
|
|
*It has been provided that full amount is received with application accordingly excess amount received would be refunded.
Answer:
|
Books of The Earth Ltd. |
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|
Journal |
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Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
2016 |
|
|
|
|
|
|
April 01 |
Bank A/c (14,000×105) |
Dr. |
|
14,70,000 |
|
|
|
To 12% Debentures Application A/c |
|
|
|
14,70,000 |
|
|
(Application money for 14,000 debentures received) |
|
|
|
|
|
|
|
|
|
|
|
|
April 01 |
12% Debentures Application A/c (14,000×105) |
Dr |
|
14,70,000 |
|
|
|
Loss on issue of Debentures (10,000×5) |
Dr |
|
50,000 |
|
|
|
To 12% Debentures A/c (10,000×100) |
|
|
|
10,00,000 |
|
|
To Securities Premium Reserve A/c (10,000×5) |
|
|
|
50,000 |
|
|
To Bank A/c (4,000×105) |
|
|
|
4,20,000 |
|
|
To Premium on Redemption of Debentures A/c |
|
|
|
50,000 |
|
|
(Application money transferred to 12% debentures A/c) |
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30 |
Debenture Interest A/c |
Dr |
|
60,000 |
|
|
|
To 12% Debentures Holder A/c |
|
|
|
60,000 |
|
|
(Interest on Debenture is payable) |
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30 |
12% Debentures Holder A/c |
Dr |
|
60,000 |
|
|
|
To Bank A/c |
|
|
|
54,000 |
|
|
To TDS |
|
|
|
6,000 |
|
|
(Interest on Debenture paid and tax deducted at source) |
|
|
|
|
|
|
|
|
|
|
|
|
Oct. 01 |
Building A/c |
Dr |
|
10,00,000 |
|
|
|
Plant and Machinery A/c |
Dr |
|
8,00,000 |
|
|
|
Goodwill A/c (bal. figure) |
Dr |
|
1,50,000 |
|
|
|
To Sundry liabilities A/c |
|
|
|
3,00,000 |
|
|
To Raman & Co. |
|
|
|
16,50,000 |
|
|
(Assets and Liabilities of Raman & Co. taken over) |
|
|
|
|
|
|
|
|
|
|
|
|
Oct. 01 |
Raman & Co. A/c |
Dr |
|
16,50,000 |
|
|
|
To 12% Debentures A/c |
|
|
|
15,00,000 |
|
|
To Securities Premium Reserve A/c |
|
|
|
1,50,000 |
|
|
( 15,000 Debentures paid as purchase price to Raman & Co.) |
|
|
|
|
|
|
|
|
|
|
|
|
Oct. 01 |
Debentures Suspense A/c |
Dr |
|
15,00,000 |
|
|
|
To 12% Debentures A/c |
|
|
|
15,00,000 |
|
|
(15,000 12% Debentures issued as collateral security against a loan from ICICI Bank) |
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
|
|
|
Mar. 31 |
Debenture Interest A/c |
Dr |
|
60,000 |
|
|
|
To 12% Debentures Holder A/c |
|
|
|
60,000 |
|
|
( Interest on Debenture is payable) |
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31 |
12% Debentures Holder A/c |
Dr |
|
60,000 |
|
|
|
To Bank A/c |
|
|
|
54,000 |
|
|
To TDS |
|
|
|
6,000 |
|
|
( Interest on Debenture is paid and tax is deducted at source) |
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31 |
Statement of Profit and Loss |
Dr |
|
1,20,000 |
|
|
|
To Debenture Interest A/c |
|
|
|
1,20,000 |
|
|
(Debenture Interest charged to Profit and Loss A/c) |
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31 |
Securities Premium Reserve A/c |
Dr |
|
50,000 |
|
|
|
To Loss on Issue of Debentures |
|
|
|
50,000 |
|
|
(Loss on issue of Debentures written off fully) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View NCERT Solutions for all chapters of Class 15