On 1 st April, 2016, Alok Ltd. Issued 7,000, 10% Debentures of Rs. 500 each at a premium of 5% and redeemable at a premium of 10% after 5 years. According to the terms of issue, Rs.200 was payable on application and balance on allotment. Record necessary entries regarding issue of debentures and writing off loss on issue of debentures.
Alok Ltd. Issued 7,000, 10% Debentures of ₹500 each at a premium of ₹ 50 par debenture redeemable at a premium of 10% after 5 years. According to the terms fo issue, ₹ 200 was payable on application and balance on allotment. Record necessary Journal entries as the time of issue of 10% Debentures.
Alka Ltd. Issued 5,000, 10% Debentures of ₹ 1,000 each at a discount of 10% redeemable at premium of 5% after 5 years. Accounting to the terms of issue ₹ 500 was payable on application and the balance amount on alltment of debentures. Record necessary enteries regarding issue of 10% Debentures .
F Ltd, issue ₹ 7,00,000, 10% Debentures of ₹ 100 each at a premium of 5% redeemable at 110% after 5 yea₹. Journalise.
Ada₹h Cosmetics Ltd. Issued 5,000, 9% Debentures of ₹ 100 each on 1st April, 2019 redeemable at a premium of 8% after 10 yea₹. According to the terms of prospectus ₹ 40 is payable on application and balance on allotment of debentures. Pass the necessart entries regarding issue of debentures.
On 1st April, 2018, Welfare Ltd. took over assets of ₹ 3,50,000 and liabilities of ₹ 60,000 of Himalyan Ltd. for the purchase consideration of ₹ 4,40,000. It paid the purchase consideration by issuing 8% Debentures of ₹ 100 each at 10% premium. On the same date it issued another 3,000, 8% Debentures of ₹ 100 each at a discount of 10%, redeemable at a premium of 5% after 5 years. According to the terms of the issue ₹ 30 is payable on application and the balance on the allotment of debentures. You are required to pass Journal entries in the books of Welfare Ltd. to record the above transactions.
DK GOEL-WRITING OFF DISCOUNT/LOSS ON ISSUE OF DEBENTURES-ILLUSTRATION 3.
