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M.176 An Aid to Accountancy—CBSE XII

8. Strong Ltd. issued 2,500; 10% Debentures of ` 1,000 each. Give Journal entries when:
(i) Debentures were issued at a premium of 20%.
(ii) Debentures were issued as a collateral security to Bank against a loan of
` 20,00,000.
(iii) Debentures were issued to a supplier of machinery costing ` 25,00,000. (3)
9. Shivalika International Ltd. issued 1,000, 10% Debentures of ` 100 each at a premium
of 5% repayable at a premium of 10%. The Board of Directors decided to transfer amount
to Debentures Redemption Reserve as per the Companies Act, 2013. Give necessary
Journal entries at the time of redemption of debentures.
Assume that investments, as required by Rule 18(7)(c) of the Companies (Shares
and Debentures) Rules, 2014, were made on 1st April of the financial year in which
redemption is due and realised at book value at the end of the financial year. Interest
on the investment is received @ 8% per annum.
Ignore interest on debentures.
Or
Anupama Ltd. had issued 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 minimum
required amount to Debentures Redemption Reserve as per the Companies Act, 2013,
at the time of redemption. Record necessary Journal entries at the time of Redemption
of Debentures and creation of Debentures Redemption Reserve.
Assume that 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 end of the same financial year. Interest on the investment is also
received @ 8% per annum for the full year.
No accounting entry is required for interest on investment. (3)
10. From the following information, compute Advance Subscription for the year ended
31st March, 2018:
`
(i) A club has 80 members each paying annual subscription of 1,000
(ii) Subscription received during the year 1,02,000
(iii) Subscription received in advance as at 31st March, 2017 20,000
(iv) Subscription outstanding as at 31st March, 2018 18,000
(v) Subscription outstanding as at 31st March, 2017 36,000
(vi) Subscription of ` 14,000 is still in arrears for the year ended
31st March, 2017
(3)
11. A, B, C and D were partners sharing profits in the ratio of 3 : 3 : 2 : 2. On 1st April,
2017, D retired owing to ill health. Goodwill of the firm is valued at ` 6,00,000. Goodwill
already appeared in the Balance Sheet at ` 50,000. Complete the following Journal
entries in this regard: