X Ltd. invited applications for issuing 1000, 9% debentures of Rs.  100 each at a discount of 6%. Applications for 1,200 debentures were received. Pro-rata allotment was made to all the applicants. Pass necessary Journal Entries for the issue of debentures assuming that the whole amount was payable with applications....

Rama Ltd. took over the following assets and liabilities of Krishna Ltd. on 1st April, 2019:   Rs. Land and Building 50,00,000 Furniture 10,00,000 Stock 5,00,000 Creditors 7,00,000 The purchase consideration of Rs. 60,00,000 was paid by issuing 12% debentures of Rs. 100 each at a premium of 20%.  Pass...

Journalise the following transaction at the time of issue of 12% debentures; Nandan Ltd. issued Rs.  90,000, 12% debentures of Rs.  100 each at a discount of 5% redeemable at 110%. Marks-2/6, CBSE:2016-17/Comp-DL/Q-13 Answer Previous Or Next Back

Vayee Ltd. purchased the following assets of E.X. Ltd.: Land and Building of Rs.  60,00,000 at Rs.  84,00,000; Plant and Machinery of Rs.  40,00,000 at Rs.  36,00,000. The purchase consideration was Rs.  1,10,00,000. Payment was made by accepting a Bill of Exchange in favour of E.X. Ltd. of Rs.  20,00,000...

Kati Ltd. issued 8,000, 9% debentures of Rs. 100 each at a discount of 10%. The full amount was payable on application. Applications were received for 9,000 debentures and allotment was made on pro-rata basis. Pass the necessary journal entries for the above transactions in the books of Kati Ltd....

X Ltd. has 4,000 12% debentures of Rs. 100 each on 1st April, 2018. According to the terms of issue interest on debentures is payable half yearly on 30th September and 31st March and the rate of tax deducted at source is 10%. Pass necessary journal entries for interest on...

Hero Ltd. purchased plant and machinery for Rs. 18,00,000 from Pearl Machines Ltd. payable Rs. 3,00,000 by drawing a promissory note and the balance by issue of 9% debentures of Rs. 100 each at a premium of 20%. Pass the necessary journal entries in the books of Hero Ltd. for...

Garvit Ltd. invited applications for issuing 3,000, 11% Debentures of Rs.  100 each at a discount of 6%. The full amount was payable on application. Applications were received for 3,600 debentures.  Applications for 600 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants....

‘UZ Ltd.’ purchased Plant and Machinery from Elk Machine Ltd. for Rs.  6,90,000. Elk Ltd. was paid by accepting a draft of Rs.  90,000 payable after three months and the balance by issue of 6% debentures of Rs.  100 each at a discount of 20%. Pass necessary journal entries for...

‘ZK Ltd.’ issued Rs.  4,00,000, 9% Debentures of Rs.  100 each at a discount of 5% redeemable at a premium of 10%. Pass necessary journal entries for the above transactions in the books of ‘ZK Ltd.’ Marks-3, CBSE:2018-19/Main/02/Q-8* Answer Previous Or Next Back

Nano Ltd. purchased assets of Dow Ltd. for Rs.  3,00,000. It also agreed to take over the liabilities of Dow Ltd. amounting to Rs.  50,000 for a purchase consideration of Rs.  2,75,000. The payment to Dow Ltd. was made by issue of 8% Debentures of Rs.  50 each at a...

Pass necessary journal entries and prepare 9% Debentures Account for the issue of 7,500, 9% Debentures of Rs.  50 each at a discount of 6%, redeemable at a premium of 10%. Marks-3, CBSE:2018-19/Main/04/Q-10 Answer Previous Or Next Back

Complete the following Journal Entries Marks-3, CBSE:2018-19/Sample/Q-9* Answer Previous Or Next Back

S. Singh Limited obtained a loan of ₹ 5,00,000 from State Bank of India @ 10 % interest. The company issued ₹ 7,50,000, 10 % debentures of ₹ 100/- each, in favor of State Bank of India as collateral security. Pass necessary journal entries for the above transactions: When company...

K K Limited obtained a loan of Rs. 10,00,000 from State Bank of India @ 9 % interest. The company issued Rs. 15,00,000, 9 % debentures of Rs. 100/- each, in favour of State Bank of India as collateral security. Pass necessary Journal entries for the above transactions: (i) When...

V K Limited purchased machinery from Modern Equipment Manufacturers Limited. The company paid the vendors by issue of some equity shares and 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...

Z Ltd. purchased machinery from K Ltd. Z Ltd. paid K Ltd as follows: (i) By issuing 5,000 equity shares of Rs.  10 each at a premium of 30%. (ii) By issuing 1000, 8% Debentures of Rs.  100 each at a discount of 10%. (iii) Balance by giving a promissory...

Venus Ltd., is a real estate company. To discharge its corporate Social Responsibility, it decided to construct a night shelter for the homeless. The company took over assets of Rs.   10,00,000 and liabilities of Rs.   1,80,000 of Cayns Ltd. for Rs.   7,60,000. Venus Ltd. issued 9% Debentures...

Pass the necessary journal entries for the issue of debentures for the following transactions : Anand Ltd. issued 800, 9% Debentures of Rs. 500 each at a premium of 20%, to the vendors for machinery purchased from them costing Rs. 4,80,000. Dawar Ltd. issued 5,000, 7% Debentures of Rs. 200...

(i) On 1st April, 2019, Bright Ltd. issued Rs. 4,00,000, 6% Debentures of Rs. 100 each at a discount of 5%, redeemable after three years. The amount per debenture was payable as follows:  On Application – Rs. 80 per debenture On Allotment – Balance The debentures were fully subscribed and...

Journalise the following transactions a) Mehar Ltd. issued ₹ 1,00,000, 12% Debentures of ₹ 100 each at a premium of 5% redeemable at a premium of 2% b) 12 % Debentures were issued at a discount of 10% to a vendor of machinery for payment of ₹ 9,00,000 c) Issue...

(i) LT Ltd. purchased land from JSS Ltd. The payment was made by issuing a cheque for ₹10,00,000 and by accepting a bill of exchange for 6 months for ₹5,00,000. The balance amount was paid by issuing 5,000, 10% Debentures of ₹100 each at par redeemable at 10% premium after...

i) Neeraj Ltd. took over business of Ajay enterprises on 01-04-2020. The details of the agreement regarding the assets and liabilities to be taken over are:  Particulars Book Value (₹) Agreed Value (₹) Building 20,00,000 35,00,000 Plant and machinery 12,00,000 8,00,000 Stock 4,00,000 4,00,000 Trade Receivables 5,00,000 4,00,000 Creditors 2,00,000...

i) Anand Ltd. purchased machinery worth ₹3,15,000 from Mahima Ltd. The payment was made by issue of 10% debentures of ₹100 each issued at a discount of 10%. Pass the necessary journal entries for purchase of machinery and debentures in the books of Anand Ltd.  ii) Manas Ltd. issued 10,000,...

M Ltd. issued 10,000, 8% Debentures of ₹100 each at 6% discount. The amount was payable as ₹60 on application and the balance on allotment. All money was duly received.  Pass necessary journal entries in the books of M Ltd.  Marks-3, CBSE:2022-23/Zone-3/Set-1/Q-18* Answer :

(a) On 1st October, 2021 Pihu Ltd. issued ₹15,00,000, 9% Debentures of ₹20 each at a discount of ₹6 per debenture. The company had a balance of ₹1,00,000 in Securities Premium Reserve Account on the same date. On 31st March, 2022 the company decided to write off discount on issue...

On 1st April, 2021, Hitesh Ltd. took over assets of ₹8,00,000 and liabilities of ₹40,000 of Pranjal Ltd. at an agreed value of ₹8,30,000. Hitesh Ltd. paid the amount to Pranjal Ltd. as follows: (i) Gave an acceptance payable after 3 months for ₹2,00,000, and (ii) Issued 10% Debentures of...

Pass necessary journal entries for issue of 12% debentures in the books of Ghanshyam Ltd. in the following cases:  (i) Issued 1,000, 12% debentures of ₹100 each at a premium of 10%, redeemable at a premium of 5%. (ii) Issued 5,000, 12% debentures of ₹100 each at a premium of...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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....

Khandelwal Ltd. took over assets of Sharma Ltd. of ₹25,00,000 and liabilities amounting to ₹7,80,000 for a purchase consideration of ₹27,00,000. The payment to Sharma Ltd. was made by issuing 10% Debentures of ₹100 each at a discount of 10%. Pass the necessary journal entries for the above transactions in...

Pass the necessary journal entries in the books of Pankaj Limited for the issue of Debentures in the following cases: (a) Issued 7500, 10% Debentures of ₹100 each at a discount of ₹10,000 redeemable at a premium of 5%. (b) Issued 5000, 10% Debentures of ₹100 each at a premium...

X Ltd. purchased assets of ₹18,00,000 and took over liabilities of ₹6,00,000 of Y Ltd. for a purchase consideration of ₹10,00,000. The payment to Y Ltd. was made by issue of 9% debentures of ₹100 each at ₹125. Calculate the number of 9% debentures issued in favour of Y Ltd....

Pass necessary journal entries in the books of Z Ltd. for the following transactions: (a) Z Ltd. invited applications for issuing 10,000, 9% debentures of ₹100 each at a premium of ₹10 per debenture. The full amount was payable on application. Applications were received for 15,000 debentures. Applications for 3,000...

Pass necessary journal entries for the issue of debentures in the following Cases: (a) Issued 50,000, 9% debentures of Rs.100 each at par redeemable at par. (b) Issued 10,000, 8% debentures of Rs.100 each at 7% premium redeemable at par. (c) Issued 750, 8% debentures of Rs.100 each at 10%...

X Ltd. invited applications for issuing 15,000 8% Debentures of ₹100 each. The amount was payable as follows: On Application……….₹ 20 per Debenture On Allotment………. Balance Applications for 30,000 Debentures were received. Applications for 5,000 Debentures were rejected and the application money was refunded to the applicants. Prorata allotment was...

Pass necessary journal entries for the issue of Debentures in the following cases: (i) Y Ltd. issued ₹5,00,000, 9% Debentures of ₹100 each at par redeemable at a premium of 10% after three year (ii) Z Ltd. issued 4500, 9% Debentures of ₹100 each at a discount of 10% redeemable...

B Ltd. purchased Building worth ₹3,00,000, Plant worth ₹2,80,000 and Furniture worth ₹20,000 from C Ltd. for a purchase consideration of ₹6,30,000. B Ltd. paid the purchase consideration by issuing 9% debentures of ₹100 each. Pass necessary journal entries in the books of B Ltd. for the acquisition of assets...

Radhey Ltd. took over assets of ₹14,00,000 and liabilities of ₹6,00,000 of Krishna Ltd. Radhey Ltd. paid the purchase consideration by issuing 10,000, 8% Debentures of ₹100 each at a premium of 10%. Pass necessary journal entries in the books of Radhey Ltd. Marks-3, CBSE:2021-22/Term-2/Zone-5/Set-1/Q-6* Answer : Back

Amay Ltd. invited applications for issuing 10,000, 8% debentures of ₹100 each. The amount was payable as follows: ₹30 on application and ₹70 on allotment. The public applied for 12,000 debentures. Applications for 8,000 debentures were accepted in full; applications for 3,000 debentures were allotted 2,000 debentures and the remaining...

Pass journal entries relating to issue of debentures for the following transactions: (a) Issued 8,000, 10% debentures of ₹100 each at a discount of 10%, redeemable at 5% premium. (b) Issued 4,000, 12% debentures of ₹100 each at 10% premium, redeemable at 6% premium. (c) Issued 1,00,000, 9% debentures of...

BX Ltd. took over a building worth ₹3,00,000, machinery worth ₹2,00,000, furniture worth ₹30,000 and its liabilities of ₹40,000 from PQ & Company for a purchase consideration of ₹6,00,000. BX Ltd. paid the purchase consideration by issuing 11% debentures of ₹100 each at a premium of 20%. Pass necessary journal...

XZ Ltd. invited applications for issuing 5000, 9% debentures of ₹100 each. The amount was payable as follows: On application….. ₹40 per debenture On allotment….. Balance Applications for 10,000 debentures were received. Applications for 2,000 debentures were rejected and the application money of these applicants was refunded to them. Pro-rata...

Pass the necessary journal entries for the issue of 9% debentures in the following cases: (a) Issued ₹5,00,000, 9% debentures of ₹100 each at par, redeemable at par, after three years. (b) Issued 4,000, 9% debentures of ₹100 each at a discount of 3%, redeemable at a premium of 10%...

Sinco Ltd purchased assets of the book value of ₹1,98,000 from Dixon Ltd. It was agreed that the purchase consideration be paid by issuing 10% debentures of ₹100 each. Record the necessary journal, entries in the books of Sinco Ltd. assuming that the debentures have been issued: At a discount...

On 1.4.2021 Y Ltd. invited applications for issuing 10,000, 9% debentures of ₹100 each at a discount of 6%. The entire amount was payable with application. Application for 12,000, 9% debentures were received. 9% debentures were allotted on pro-rata basis to all the applicants. Excess money received with applications was...

Pass necessary journal entries for the issue of debentures in the following cases: Issued ₹75,00,000, 9% debentures of ₹100 each at a premium of l0% redeemable at a premium of 5% after 3 years, Issued 8,000, 9% debentures of ₹100 each at a discount of 6% redeemable at a premium...

Shovan Limited took over the assets of ₹60,00,000 and liabilities of ₹10,00,000 from Swami Limited for an agreed purchase consideration of ₹45,00,000. The amount was payable by issuing 10% debentures of ₹100 each at 25% premium. Pass necessary journal entries for the above transactions in the books of Shovan Limited....

Pass necessary journal entries for the following transactions relating to the issue of debentures: (a) Gagan Limited issued ₹10,00,000, 9% Debentures of ₹100 each at a premium of 5%, redeemable at par after four years. (b) KS Limited issued ₹10,00,000, 10% Debentures of ₹100 each at par, redeemable at 10%...