Issue Of Debentures
15 previous year questions.
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Chapter Questions 15 MCQs
(i) Issued 500, 9% Debentures of 100 each at 10% discount, redeemable at a premium of 10% after 5 years.
(ii) Issued 400, 9% Debentures of 100 each at 5% discount, redeemable at par after 5 years.
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.
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 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:
On Application – ₹ 200 per debenture
On Allotment – Balance (including premium)
The debentures were fully subscribed and all amounts were duly received.
Pass the necessary journal entries for issue of debentures in the books of Swar Sangam Limited.
Pass the necessary journal entries in the books of Apoorv Ltd. for the above transactions.
Mayank Ltd. invited applications for issuing 70,000 equity shares of 100 each. The amount was payable as follows:
On Application – 20 per share
On Allotment – 40 per share
On First Call – 20 per share
On Second and Final Call – Balance
Applications for 1,00,000 shares were received and allotment was made to all the applicants on pro-rata basis. Jay, a shareholder who had applied for 1,000 shares, failed to pay the allotment money and his shares were forfeited immediately after the allotment. Meenakshi, the shareholder of 1,400 shares, failed to pay the first call money and her shares were forfeited just after the first call. The second and final call has not been made.
Pass necessary journal entries in the books of the company for the above transactions.
(ii) Pass necessary journal entries for purchase of machinery and issue of debentures.