On 1st April, 2023, GI Ltd. issued 40,000, 12% debentures of ₹ 100 each at a premium of 10%, redeemable at par after five years. The company closes its books on 31st March every year. Interest on debentures is payable half-yearly on 30th September and 31st March every year. Pass necessary journal entries in the books of the company for issue of debentures and payment of interest for the year ended 31st March, 2024.
Show Hint
Solution and Explanation
Journal Entries in the books of GI Ltd.
| Particulars | Dr. (₹) | Cr. (₹) |
|---|---|---|
| Bank A/c To 12% Debentures A/c To Securities Premium A/c (Issue of 40,000 debentures at ₹ 110 each) | 44,00,000 | 40,00,000 4,00,000 |
| Interest on Debentures A/c To Debenture holders A/c (Half-yearly interest due on debentures) | 4,80,000 | 4,80,000 |
| Debenture holders A/c To Bank A/c (Payment of half-yearly interest) | 4,80,000 | 4,80,000 |
Calculation:
Interest = ₹ 40,00,000 × 12% = ₹ 4,80,000 annually.
Paid in two equal instalments.
Top CBSE CLASS XII Accountancy Questions
From the following Balance Sheet of Hira Ltd. as at 31st March, 2023, prepare Comparative Balance Sheet:
- On 1st May, 2023, Amrit Ltd. issued 10,000, 10% debentures of ₹100 each at a premium of 10%, redeemable at a premium of 10%. Loss on issue of debentures will be:
- Gupta and Sharma are partners in a firm sharing profit in the ratio of 4:1. They admitted Preeti as a new partner for \( \frac{1}{4} \) share in the profits, which she acquired wholly from Gupta. The new profit sharing ratio of Gupta, Sharma, and Preeti will be:
- On the dissolution of a partnership firm, there were debtors of ₹34,000. Debtors of ₹1,000 became bad, and 60% was realized from the remaining debtors. Which account will be debited and by how much amount on the realization from debtors?
- If vendors are issued fully paid shares of ₹1,25,000 in purchase consideration of net assets of ₹1,50,000, the balance of ₹25,000 will be credited to:
Top CBSE CLASS XII Issue of Debentures Questions
- Y Ltd. issued 1,000 debentures of Rs 100 each at par, redeemable at a premium of 10 percent. Pass journal entries for issue and redemption.
On 1st October, 2024, Nirmal Ltd. issued 6,000, 11% Debentures of 100 each at a premium of 10%, redeemable at a premium of 10%. ‘Loss on Issue of Debentures’ will be:
- Raja Ltd. issued 8,000, 10% Debentures of 100 each at 98 per debenture. 10% Debentures Account will be credited by:
On 1st April, 2023, Mudra Ltd. issued 9,000, 12% Debentures of 100 each at 10% premium, redeemable at a premium of 10% after 4 years. The interest due on debentures for the year ended 31st March, 2024 was:
On 1st April, 2024, Varsha Ltd. purchased from Rama Ltd., furniture at 12,00,000 and machinery at 20,00,000. It also took over its liabilities amounting to 3,00,000. The purchase consideration of 35,00,000 was paid by issuing a bank draft of 2,00,000 and the balance by issue of 11% Debentures of 100 each, at a premium of 10%.
Pass necessary journal entries for the above transactions in the books of Varsha Ltd.
Top CBSE CLASS XII Questions
- 2, b, c are in A.P. and the range of determinant $\begin{vmatrix}1&1&1\\ 2&b&c\\ 4&b^{2}&c^{2}\end{vmatrix}$ is [2, 16]. Then find range of c is
- A boy of mass 50 kg is standing at one end of a, boat of length 9 m and mass 400 kg. He runs to the other, end. The distance through which the centre of mass of the boat boy system moves is
- A capillary tube of radius r is dipped inside a large vessel of water. The mass of water raised above water level is M. If the radius of capillary is doubled, the mass of water inside capillary will be
- A circular disc is rotating about its own axis. An external opposing torque 0.02 Nm is applied on the disc by which it comes rest in 5 seconds. The initial angular momentum of disc is
- A circular disc is rotating about its own axis at uniform angular velocity \(\omega.\) The disc is subjected to uniform angular retardation by which its angular velocity is decreased to \(\frac {\omega}{2}\) during 120 rotations. The number of rotations further made by it before coming to rest is