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CBSE CLASS XII

Q. 67. (Writing off discount on debentures when the first redemption falls at the end of second year). A company issued 10% Debentures of Rs. 20,00,000 at 8% discount, redeemable at par. Assume further that debentures are to be redeemed by draw of lots method in the following manner:

Pass the Journal entry for issue of debentures and ledger account of discount on debentures and ledger account of discount on debentures for 5 years.;

Q. 68. X ltd. issued 10,000 , 10% debentures of Rs. 50 each at a discount of 8% on April 1,2000 redeemable in four equal annual instalments starting March, 2003. Securities premium account shows a balance of Rs. 17,500. Compute the amount of discount to be written off and also record the Journal entries in the books of X ltd. The company closes its accounts on 31st March every year.

Q. 69. (Debentures discount, when first redemption falls in next accounting period) Exe Ltd. issued Debentures at 94 percent for Rs. 25,000 on !st April, 2000 repayable by five equal annual drawings of Rs. 5000 each. The company prepares its final accounts on 31st December every year. Calculate the amount of discount to be written off every accounting year assuming that the company decide to write off the debentures discount during the life of the debentures.

Q. 70. (Writing off loss on issue of debentures) Green Ltd. issued 5,000 , 6% debentures of Rs. 100 each at a discount of 5%repayable after 5 years at a premium of 5% You are required to show (i) Journal entries at the time of issue and redemption of debenture s and (ii) Show the ‘ Loss on Issue of debentures Account’ over the period .

Q. 71. (Interest on debentures) X ltd , issued 500 10% debentures of Rs. 100 each on 1st January, 2007 at a discount of 10% redeemable at a premium of 10%. Give Journal entries relating issue of debentures and debenture interest for the period ended 31st December , 2007 assuming that the interest was payable half-yearly on 30th june and 31st December and tax deducted at source is 10%. X ltd. follows calendar year as its accounting year.

Company Account : Redemption of Debentures

Q. 72. N Ltd. issues 10,000 debentures of Rs. 100 each at a discount of 10% with the condition that they will be redeemed at a premium of 5% after the expiry of three years.

Pass the necessary Journal entries only for the issue and redemption of these debentures after the expiry of three years.

Q. 73. X Ltd. issued 500 12% debentures of Rs. 100 each at par repayable after 5 years at a premium of 10% You are required to show the journal entries at the time of issue and redemption of debentures. Also show the Loss on issue of debentures account over the period.

Q. 74. Pragati Ltd. has 50,000 , 8% debentures of Rs. 100 each due for redemption in four equal instalments starting from March 31.2003. Debenture Redemption Reserve has a balance of Rs. 18,00,000 on that date . Record necessary journal entries.

Q. 75. Ashoka Ltd. issued 10,000 8% debentures of Rs. 100 each on September 1,2001 redeemable at premium of 7% as under:

The Board of Directors has also decided to transfer the required amount to debenture Redemption Reserve in four equal annual instalments starting with March 31,2002. Record necessary journal entries at the time of issue and at the time of redemption of debenture and creation of Debenture Redemption Reserve.

Paper By Mr. Rahul Kadd
Email Id : [email protected]
Phone No. : 9212197510
Oscar Academy- BN - 4 (East),
Shalimar Bagh, Delhi-88