X.Ltd. issued 15,000, 10% debentures of Rs 100 each. Give journal entries and the Balance Sheet in each of the following cases:
(i) The debentures are issued at a premium of 10%;
(ii) The debentures are issued at a discount of 5%;
(iii) The debentures are issued as a collateral security to bank against a loan of Rs 12,00,000; and
(iv) The debentures are issued to a supplier of machinery costing Rs 13,50,000.
(i)
Books of X. Ltd.
Journal
| Date | Particulars | L.F. | Amount (Rs.) | Amount (Rs.) | |
| Bank A/c | Dr. | 16,50,000 | |||
| To 10% Debentures A/c | 15,00,000 | ||||
| To Securities Premium A/c | 1,50,000 | ||||
| (Being Issued 15,000, 10% debentures of Rs 100 each at 10% premium) | |||||
X Ltd.
Balance Sheet
| Particulars | Note No. | Amount (Rs) |
| I. Equity and Liabilities | ||
| 1. Shareholders’ Funds | ||
| a. Reserves and Surplus | 1 | 1,50,000 |
| 2. Non-Current Liabilities | ||
| a. Long-Term Borrowings | 2 | 15,00,000 |
| 3. Current Liabilities | ||
| Total | 16,50,000 | |
| II. Assets | ||
| 1. Non-Current Assets | ||
| 2. Current Assets | ||
| a. Cash and Cash Equivalents | 3 | 16,50,000 |
| Total | 16,50,000 |
NOTES TO ACCOUNTS
| Note No. | Particulars | Amount (Rs) |
| 1 | Reserves and Surplus | |
| Securities Premium | 1,50,000 | |
| 2 | Long-Term Borrowings | |
| 10% Debentures (Secured) | 15,00,000 | |
| 3 | Cash and Cash Equivalents | |
| Cash at Bank | 16,50,0 |
(ii)
| Date | Particulars | L.F. | Amount (Rs.) | Amount (Rs.) | |
| Bank A/c | Dr. | 14,25,000 | |||
| Discount on Issue of Debentures A/c | Dr. | 75,000 | |||
| To 10% Debentures | 15,00,000 | ||||
| (Being Issued 15,000 10% Debenture of Rs 100 each at 5% discount) | |||||
X Ltd.
Balance Sheet
| Particulars | Note No. | Amount (Rs) |
| I. Equity and Liabilities | ||
| 1. Shareholder’s Funds | ||
| 2. Non-Current Liabilities | ||
| a. Long-Term Borrowings | 1 | 15,00,000 |
| 3. Current Liabilities | ||
| Total | 15,00,000 | |
| II. Assets | ||
| 1. Non-Current Assets | ||
| a. Other Non-Current Assets | 2 | 75,000 |
| 2. Current Assets | ||
| a. Cash and Cash Equivalents | 3 | 14,25,000 |
| Total | 15,00,000 |
NOTES TO ACCOUNTS
| Note No. | Particulars | Amount (Rs) |
| 1 | Long-Term Borrowings | |
| 10% Debentures (Secured) | 15,00,000 | |
| 2 | Other Non-Current Assets | |
| Discount on Issue of Debentures | 75,000 | |
| 3 | Cash and Cash Equivalents | |
| Cash at Bank | 14,25,000 |
(iii) No entry will be passed for issuing debentures as a collateral security
X Ltd.
Balance Sheet
| Particulars | Note No. | Amount (Rs) |
| I. Equity and Liabilities | ||
| 1. Shareholders’ Funds | ||
| 2. Non-Current Liabilities | ||
| a. Long-Term Borrowings | 1 | 12,00,000 |
| 3. Current Liabilities | ||
| Total | 12,00,000 | |
| II. Assets | ||
| 1. Non-Current Assets | ||
| 2. Current Assets | ||
| a. Cash and Cash Equivalents | 2 | 12,00,000 |
| Total | 12,00,000 |
NOTES TO ACCOUNTS
| Note No. | Particulars | Amount (Rs) |
| 1 | Long-Term Borrowings | |
| Bank Loan (Secured against issue Debentures of Rs 12,00,000) | 12,00,000 | |
| 2 | Cash and Cash Equivalents | |
| Cash at Bank | 12,00,000 |
Alternative Method
| Date | Particulars | L.F. | Amount (Rs.) | Amount (Rs.) | |
| Debenture Suspense A/c | Dr. | 15,00,000 | |||
| To 10% Debentures A/c | 15,00,000 | ||||
| (Being Issued 15,000 10% Debentures of Rs 100 each ) | |||||
X Ltd.
Balance Sheet
| Particulars | Note No. | Amount (Rs) |
| I. Equity and Liabilities | ||
| 1. Shareholders’ Fund | ||
| 2. Non-Current Liabilities | ||
| a. Long-Term Borrowings | 1 | 12,00,000 |
| 3. Current Liabilities | ||
| Total | 12,00,000 | |
| II. Assets | ||
| 1. Non-Current Assets | ||
| 2. Current Assets | ||
| a. Cash and Cash Equivalents | 2 | 12,00,000 |
| Total | 12,00,000 |
NOTES TO ACCOUNTS
| Note No. | Particulars | Amount (Rs) |
| 1 | Long Term Borrowings | |
| Secured: | ||
| Bank Loan | 12,00,000 | |
| 10 % Debentures (Secured against issue of Debentures of Rs 12,00,000) | 15,00,000 | |
| Less: Debenture Suspense Account | 15,00,000 | |
| 12,00,000 | ||
| 2 | Cash and Cash Equivalents | |
| Cash at Bank | 12,00,000 |
(iv)
| Date | Particulars | L.F. | Amount (Rs.) | Amount (Rs.) | |
| Machinery A/c | Dr. | 13,50,000 | |||
| To Vendor A/c | 13,50,000 | ||||
| (Being Machinery purchased from vendor) | |||||
| Vendor A/c | Dr. | 13,50,000 | |||
| Discount on Issue of Debentures A/c | Dr. | 1,50,000 | |||
| To 10% Debenture A/c | 15,00,000 | ||||
| (15,000 10% Debentures @ Rs 100 each issued at 10% discount to the vendor in consideration of Machinery of Rs 13,50,000) | |||||
X Ltd.
Balance Sheet
| Particulars | Note No. | Amount (Rs) |
| I. Equity and Liabilities | ||
| 1. Shareholders’ Funds | ||
| 2. Non-Current Liabilities | ||
| a. Long Term Borrowings | 1 | 15,00,000 |
| 3. Current Liabilities | ||
| Total | 15,00,000 | |
| II. Assets | ||
| 1. Non-Current Assets | ||
| a. Fixed Assets | ||
| i. Tangible Assets | 2 | 13,50,000 |
| b. Other Non-Current Assets | 3 | 1,50,000 |
| 2. Current Assets | ||
| Total | 15,00,000 |
NOTES TO ACCOUNTS
| Note No. | Particulars | Amount (Rs) |
| 1 | Long Term Borrowings | |
| 10% Debentures (Secured) | 15,00,000 | |
| 2 | Tangible Assets | |
| Plant and Machinery | 13,50,000 | |
| 3 | Other Non-Current Assets | |
| Discount on Issue of Debentures | 1,50,000 |
0 تعليقات