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Issue of Debentures Revision Questions
Issue of Debentures Revision Questions
1.G. Ltd. a listed company issued 75,00,000, 6% debentures of ₹50 each at par
payable ₹15 on application and ₹35 on the allotment, redeemable at par after 7
years from the date of issue of debentures. Record necessary entries in the books of
the Company.
3.A. Ltd. issued 10,000, 10% debentures of ₹100 each at a premium of 5% payable
as follows:
₹10 on Application;
₹20 along with premium on allotment and balance on first and final call.
The debentures were fully subscribed and all money was duly received.
Record necessary journal entries. Also, show how the amount will appear in the
balance sheet.
5.A. Ltd. issued 4,000, 9% debentures of ₹ 100 each on the following terms:
₹ 20 on Application;
₹ 20 on Allotment;
₹ 30 on First call; and
₹ 30 on Final call.
The public applied for 4,800 debentures. Applications for 3,600 debentures were
accepted in full. Applications for 800 Debentures were allotted 400 debentures and
applications for 400 Debentures were rejected. All money called and duly received.
Record necessary journal entries.
6.T. Ltd. offered 2,00,000, 8% debenture of ₹ 500 each on June 30, 2014 at a
premium of 10% payable as ₹ 200 on application (including premium) and balance
on allotment, redeemable at par after 8 years. But applications are received for
3,00,000 debentures and the allotment is made on pro-rata basis. All the money due
SYSKNOW ONLINE CLASSROOMS PRIVATE LIMITED
7.X. Ltd. invited applications for the issue of 10,000, 14% debentures of ₹100 each
payable as to ₹20 on application, ₹60 on the allotment, and the balance on a call.
The company receives applications for 13,500 debentures, out of which
applications for 8,000 debentures are allotted in full, applications for 5000
debentures were allotted 40% of the received applications, and the remaining
applications were rejected. The surplus money on partially allotted applications is
utilized towards allotment. All the sums due are duly received. Record necessary
journal entries regarding the issue of debentures.
9.
M. Ltd. took over assets of ₹9,00,00,000 and liabilities of ₹70,00,000 of S.Ltd. and
issued 8% debentures of ₹100 each. Record necessary entries in the books of M.
Ltd.
10.B. Ltd. purchased assets of the book value of ₹ 4,00,000 and took over the
liability of ₹ 50,000 from Mohan Bros. It was agreed that the purchase
consideration, settled at ₹ 3,80,000, be paid by issuing debentures of ₹ 100 each.
What Journal entries will be made in the following three cases, if debentures are
issued:
a. at par,
b. at a discount of 10% and
c. at a premium of 10%.
12.X. Ltd. issued 15,000, 10% debentures of ₹100 each. Give journal entries and
present it in the balance sheet in each of the following cases:
SYSKNOW ONLINE CLASSROOMS PRIVATE LIMITED
17.B. Ltd. issued 1,000, 12% debentures of ₹100 each on April 01, 2014 at a
discount of 5% redeemable at a premium of 10%. Give journal entries relating to
the issue of debentures and debentures interest for the period ending March 31,
2015 assuming that interest is paid half-yearly on September 30 and March 31 and
tax deducted at source is 10%.