Pass necessary journal entries for issue of debentures for the following transactions: (i) Kajal Ltd. issued 30,000, 11% Debentures of Rs. 100 each at a discount of 10%, redeemable at a premium of 5%. (ii) Ninja Ltd. issued 32,000, 8% Debentures of Rs. 100 each at a premium Rs. 20 per debenture, redeemable at a … Read more
Dhatu Ltd. invited applications for issuing 4,000, 11% Debentures of Rs. 100 each at a premium of Rs. 50 per debenture. Full amount was payable on application. Applications were received for 5,000 debentures. Applications for 1,000 debentures were rejected and application money was refunded. Debentures were allotted to the remaining applicants. Pass necessary journal entries … Read more
Priti Ltd. purchased assets worth Rs. 5,40,000 and took over liabilities of Rs. 1,20,000 of Payal Ltd. for a purchase consideration of Rs. 5,28,000. Priti Ltd. paid half the amount by cheque and the balance was settled by issuing 10% Debentures of Rs. 100 each at a premium of 10%. Pass necessary journal entries for … Read more
On 1st April, 2022, Zubian Ltd. issued Rs. 10,00,000, 7% Debentures of Rs. 100 each at a premium of 6%, redeemable at a premium of 4% after five years. The company had a balance of Rs. 30,000 in Securities Premium Account. (a) Pass necessary journal entries for issue of debentures and for writing off ‘Loss … Read more
Grapple Ltd. took over assets of Rs. 25,00,000 and liabilities of Rs. 5,00,000 from Allore Ltd. for an agreed purchase consideration of Rs. 18,00,000. Grapple Ltd. issued 11% Debentures of Rs. 100 each at 20% premium in satisfaction of the purchase consideration. Pass necessary journal entries in the books of Grapple Ltd. Show your workings … Read more
Sunrise Ltd. acquired assets of Rs. 3,60,000 and took over creditors of Rs. 1,00,000 from Moonlight Ltd. for an agreed purchase consideration of Rs. 4,80,000. Sunrise Ltd. issued 9% Debentures of Rs. 100 each at a discount of 4% in satisfaction of the purchase consideration. Pass necessary journal entries in the books of Sunrise Ltd. … Read more
Pass necessary journal entries for the issue of debentures in the books of YK Ltd.: (i) Issued 500, 9% debentures of ₹1,000 each at par, redeemable at par. (ii) Issued 20,00,000, 10% debentures at 6% discount, redeemable at par. (iii) Issued 2,000, 8% debentures of ₹100 each at a discount of 2%, redeemable at … Read more
On 01.04.2021, Bain Ltd. purchased from Cayres Ltd., Machinery at ₹17,00,000 and Land and Building at ₹40,00,000. It also took over its liabilities amounting to ₹7,00,000. The purchase consideration of ₹60,00,000 was paid as follows: ₹5,00,000 through a cheque and the balance by issue of 9% debentures of 100 each at a premium of 10%. … Read more
On 01.04.2021, Aman Ltd. purchased from Kamal Ltd. Machinery ₹5,00,000, Furniture ₹3,00,000 and Land and Building ₹40,00,000. It also took over the sundry creditors of Kamal Ltd. of ₹8,00,000. The purchase consideration was ₹36,00,000. Payment to Kamal Ltd. was made by issue of 9% Debentures of ₹100 each at a discount of 10%. On 31.03.2022, … Read more
Health2Wealth Ltd. had share capital of ₹80,00,000 divided in shares of ₹100 each and 20,000, 8% Debentures of ₹100 each as part of capital employed. The company need additional funds of ₹55,00,000 for which they decided to issue debentures in such a way that they got required funds after issuing debentures of the same class … Read more