Pass journal entries for issue of debentures for the following transactions: Issued 3,000, 11% debentures of ₹100 each at par, redeemable at 5% premium. Issued 4,000, 12% debentures of ₹100 each at 5% premium, redeemable at 10% premium. Issued 3,00,000, 9% debentures of ₹100 each at par redeemable at par. Issued 7,00,000, 9% debentures at … Read more
Sujata Ltd. invited applications for issuing 50,000, 9% debenture of ₹100 each at a discount of 10% redeemable at par after five years. The debentures were fully subscribed and all money was duly received. The company had a balance of ₹3,00,000 in Securities Premium Reserve which it decided to use for writing off the discount/loss … Read more
Surya Ltd. purchased machinery from Mohan Equipment Ltd. The company paid the vendors by issue of 9% debentures and the balance through an acceptance in their favour payable after three months. The accountant of the company while Journalising the above mentioned transactions left some items blank. Fill in the blanks in the given below Journal … Read more
Yogadatra Ltd. (pharmaceutical company) appointed marketing expert, Mr. Kartikay as the CEO of the company, with a target to penetrate their roots in the rural regions. Mr. Kartikay discussed the ways and means to achieve target of the company with financial, production and marketing departmental heads and asked the finance manager to prepare the budget. … Read more
Youth Ltd. took a loan of ₹15,00,000 from State Bank of India against the security of tangible assets. In addition to principal security, it issued 10,000 11% debentures of ₹100 each as collateral security. Pass necessary journal entries for the above transactions, if the company decided to record the issue of 11% debentures as collateral … Read more
Vedesh Ltd. purchased a running business of Vibhu Enterprises for a sum of ₹12,00,000. Vedesh Ltd. paid ₹60,000 by drawing a promissory note in favour of Vibhu Enterprises, ₹1,90,000 through bank draft and balance by issue of 8% debentures of ₹100 each at a discount of 5%. The assets and liabilities of Vibhu Enterprises consisted … Read more
On July 01, 2022, Panther Ltd. issued 20,000, 9% Debentures of ₹100 each at 8% premium and redeemable at a premium of 15% in four equal instalments starting from the end of the third year. The balance in Securities Premium on the date of issue of debentures was ₹80,000. Interest on debentures was to be … Read more
Pioneer Fitness Ltd. took over the running business of Healthy World Ltd. having assets of ₹10,00,000 and liabilities of ₹1,70,000 by: a) Issuing 8,000 8% Debentures of ₹100 each at 5% premium redeemable after 6 years @ ₹110; and b) Cheque for ₹50,000. Pass the Journal entries in the books of Pioneer Fitness Ltd. Marks-3, … Read more
Chiranjeevi Limited issued 2,000, 10% debentures of ₹100 each. Pass the necessary Journal entries for the issue of debentures in the following (a) When debentures were issued at 10% premium, redeemable at 5% premium. (b) When debentures were issued at 5% discount, redeemable at 10% premium. (c) When debentures were issued at par, redeemable at … Read more
Vimal Ltd. purchased assets worth ₹5,00,000 and took over liabilities of ₹1,00,000 of Kapil Ltd. for a purchase consideration of ₹4,50,000. Vimal Ltd. paid one third of the amount by cheque and balance was settled by issuing 11% debentures of ₹100 each at a premium of 20%. Pass necessary journal entries in the books of … Read more