Page 314 - MA-12

Model Test Papers M.5

7. (a) Nova Ltd. had issued on 1st October, 2014, 10,000, 9% Debentures of ` 100 each at
par redeemable at par at the end of 4 years. The Board of Directors decided to
transfer the amount to Debentures Redemption Reserve as per the Companies
Act, 2013, at the time of redemption.
Investments, as required by Rules framed under Section 71(4), were made on
1st April of the financial year in which redemption is due and realised at book
value at the time of redemption. Interest on the investment is also received
@ 8% per annum.

Pass the necessary Journal entries for Redemption of Debentures, Debentures
Redemption Reserve and Debentures Redemption Investment. Ignore interest
on Debentures.
(b) Pass necessary Journal entries relating to the issue of debentures for the following:

(i) Issued 4,000; 9% Debentures of ` 100 each at a premium of 8% redeemable at
10% premium.

(ii) Issued 6,000; 9% Debentures of ` 100 each at par, repayable at a premium
of 10%.

(iii) Issued 10,000; 9% Debentures of ` 100 each at a premium of 5%, redeemable
at par. [6 + 6 = 12]

8. (a) Sajal Ltd. offered 32,000 equity shares of ` 100 each to public at a premium of
` 20 per share. The amount was payable as: ` 20 on application; ` 40 (including
premium) on allotment; and the balance on first and final call. Subscription was
received for 30,000 shares.

All the amounts were duly received except from a shareholder holding 4,000 shares
who did not pay the first and final call. His shares were forfeited. Show ‘Share Capital’
in the Balance Sheet of Sajal Ltd.

(b) From the following information extracted from the books of Imara Ltd., prepare
Balance Sheet of the company as at 31st March, 2019 as per Schedule III, Part I
of the Companies Act, 2013:

(` in ‘‘000) (` in ‘‘000)
Long-term Borrowings 600 Short-term Borrowings 180
Share Capital 780 Trade Payables 40
Fixed Assets (Tangible) 1,200 Reserves and Surplus 200
Trade Receivables 160 Inventories 40
Share Application Money Cash and Cash Equivalents 120
Pending Allotment 20 Non-current Investments 400
Long-term Provisions 200 Current Investments 100
Prepaid Expenses 20 Outstanding Expenses 20
Note: Proposed Dividend for the year 2018–19 is ` 20,000. [3 + 9 = 12]