This document contains 9 questions regarding the journal entries for various transactions involving the issuance of debentures by companies. The questions cover debenture issuances at par, premiums, and discounts, as well as entries for debenture interest payment and redemption.
This document contains 9 questions regarding the journal entries for various transactions involving the issuance of debentures by companies. The questions cover debenture issuances at par, premiums, and discounts, as well as entries for debenture interest payment and redemption.
This document contains 9 questions regarding the journal entries for various transactions involving the issuance of debentures by companies. The questions cover debenture issuances at par, premiums, and discounts, as well as entries for debenture interest payment and redemption.
This document contains 9 questions regarding the journal entries for various transactions involving the issuance of debentures by companies. The questions cover debenture issuances at par, premiums, and discounts, as well as entries for debenture interest payment and redemption.
QUESTION 1 A company purchased assets of 9,90,000 from another firm. Payment was made by issuing 11%
Debentures of 100 each. Pass Journal entries when debentures have been issued: (i) at par, (i) at a premium of 10% and (ii)at a discount of 10%.
QUESTION 2.
Exe Ltd. Took over assets of 7,00,000 and liabilities of 60,000 of Wye Ltd. for the purchase consideration of 6,60,000. Exe Ltd paid the purchase consideration by issuing 9% Debentures of 100 each at 10% premium. Pass Journal entries in the books of Exe Ltd.
QUESTION3. Exe Ltd. Purchased assets of 8,40,000 and took over liabilities of 80,000 of Whe Ltd. at a value of 7,20,000. Exe Ltd. Issued 10% Debentures of 100 each at 10 % Discount in full satisfaction of the price. The company decided to write off discount on Issue of Debentures from Securities Premium Reserve of 1,00,000. Pass lourmal entriesin the booksof Exe Ltd. A
QUESTION 4.
Hyatt Ltd. Took loan of 8,00,00 from State Bank of India and issued 10,000,9% Debe: each collateral security. How willissue as of debentures be shown in the Balance Shee i) When Journal entry is not passed, and (i) When Journal entry is passed?
QUESTION5. Blue Ltd. ssued 8,00,000, 9% Debentures of 100 each at par and redeemable at 10% premium at the end of sixth year. Pass Journal entries for issue of debentures.
QUESTION 6.
KTR Ltd, issued 365, 99% Debentures of 1,000 each on 4th March, 2016. Pass necessary Journal entries for the issue of debentures in the following situations: i) When debentures were issued at par, redeemable at a premium of 10% . (iWhen debentures were issued at 6% discount, redeemable at 5% premium.
INCITE COMMERCE STUDIES
CA VITTHAL
INCITECOMMERCE STUD INCITE COMMERCE STUDIES
QUESTION 7.
debentures in each of the following transactions:
Pass Journal entries for issue of of 5% to be repaid at par at the Star Ltd. Issue 30,000, 10% Debentures of 100 each at a discount i) end of 5 year nominal (face) value of 40,00,0000 at a (i) Green Ltd. 10% Debentures of 100 each for the total Issue at the end of 5 year. premium of 5% to be redeemed of 100 each at par but redeemable at the end of 10 Moon (ii) issue 50,00,000, 10% Debentures Ltd. year at 105% each at discount of 5% repayable at a 10% Debentures of 100 a (iv) Strong Ltd. issue 60,00,000, premium of 10% at the end of 5 years. redeemable at 19% Debentures of 100 each at a premium of 5% (v) Smart Ltd issues 70,00,000, 110% at the end of 10 years.
QUESTION 8 subscribed. Debentures of 100 each April, 2012. The issue was fully on 1st BG Ltd. Issued 2,000, 12% on 30th September and on the debentures is payable half-yearly According to the terms of issue, 31st March and the tax deducted at source is 10% Pass necessary Journal entries related to the debenture interest for the half-y debentures of the Statement of Profit and March, 2013 and transfer of interest on
QUESTION9.
Debentures of 200 each at a discount of
5% On 1st April, 2018, Moon ight Ltd. Issued 1,000, 9% and allotment redeemabie after 5 years at a premium of 10%. All the debentures were subscribed Reserve is 10,000. Profit for the year was 50,000. was made. The balance in Securities Premium and writing off the loss from Securities premium Pass the lournalentries for issue of debentures Balance Sheet as at Reserve first and thereafter from for the year. Prepare the extract of the profit 31st March, 2019
