Page 149 - MA12

Model Test Papers M.55

5. (a) Mars Ltd.
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 5,00,000
To Debentures Application and Allotment A/c 5,00,000
(Being the application money received for 5,000 debentures)
Debentures Application and Allotment A/c ...Dr. 5,00,000
To 9% Debentures A/c 5,00,000
(Being the issue of 5,000, 9% Debentures of ` 100 each at par)
Debentures Suspense A/c ...Dr. 10,00,000
To 9% Debentures A/c 10,00,000
(Being the issue of 10,000, 9% Debentures of ` 100 each as
collateral security for a loan from ICICI)
AN EXTRACT OF BALANCE SHEET OF MARS LTD. as at...
Particulars Note No. `
I. EQUITY AND LIABILITIES
Non-Current Liabilities
Long-term Borrowings 1 13,00,000
Note to Accounts
Particulars ` `

1. Long-term Borrowings
5,000, 9% Debentures of ` 100 each 5,00,000
Loan from ICICI Ltd. 8,00,000
(Secured by the issue of 10,000; 9% Debentures of ` 100 each as collateral security)
10,000; 9% Debentures of ` 100 each (issued as collateral security) 10,00,000
Less: Debentures Suspense Account 10,00,000 Nil
13,00,000
(b) JOURNAL OF EUROPA LTD.
Date Particulars L.F. Dr. (`) Cr. (`)

Incorporation Cost A/c ...Dr. 2,00,000
To Promoters’ A/c 2,00,000
(Being the incorporation cost)
Promoters’ A/c ...Dr. 2,00,000
To 10% Debentures A/c 2,00,000
(Being 2,000; 10% Debentures of ` 100 each issued at par)
Underwriting Commission A/c ...Dr. 1,00,000
To Underwriters’ A/c 1,00,000
(Being the underwriting commission due)
Underwriters’ A/c ...Dr. 1,00,000
To 10% Debentures A/c 1,00,000
(Being 1,000; 10% Debentures of ` 100 each issued at par)