Why are irredeemable debentures also known as perpetual debentures?
Pass necessary journal entries for the issue of Debentures in the following cases:
Nargis Ltd. purchased assets of ₹ 8,00,000 and took over liabilities of ₹ 2,00,000 from Gauri Ltd. The payment was made by issue of 8% Debentures of ₹ 100 each at a premium of 20%. Number of debentures issued will be:
Vinod Ltd. issued 40,000, 9% Debentures of ₹ 100 each as collateral security for a loan of ₹ 30,00,000 taken from Indian Bank. Fill in the blanks for the journal entry for issue of debentures as a collateral security:
Vinod Ltd.
Journal
Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) | |
---|---|---|---|---|---|
________ A/c | Dr. | ________ | |||
To ________ A/c | ________ | ||||
(₹ 40,00,000 debentures issued as collateral security for a loan of ₹ 30,00,000) |
What are Registered Debentures?
Sunbeam Ltd. issued 20,000, 11% debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 5%. The Loss on Issue of Debentures Account will debited by:
Himani Ltd. purchased assets of Himanshu Ltd. for ₹ 8,40,000 and took over the liabilities (creditors) of ₹ 80,000 for an agreed purchase consideration of ₹ 8,00,000. Himani Ltd. issued 12% debentures of ₹ 100 each at 25% premium for purchase consideration.
Pass necessary Journal entries in the books of Himani Ltd.
Beta Ltd issued 5,000, 9% debentures of Rs.500 each. Pass the necessary journal entries for the issue of debentures in the books of the company When debentures are issued at a premium of 25% to the vendors for machinery purchased for Rs. 6,25,000.
BG Ltd. issued 2,000, 12% debentures of ₹100 each on 1st April, 2012. The issue was fully subscribed. According to the terms of issue, interest on the debentures is payable half-yearly on 30th September and 31st March and the tax deducted at source is 10%. Pass necessary journal entries related to the debenture interest for the half-yearly ending 31st March, 2013 and transfer of interest on debentures of the year to the Statement of Profit and Loss.