Page 400 - AAAXII

M.382 An Aid to Accountancy—CBSE XII

8. X Ltd. issued 10,000, 10% Debentures of ` 100 each. Pass necessary Journal entries
for issue of Debentures in the following cases:
(i) When Debentures are issued at par and redeemable at par.
(ii) When Debentures are issued at par and are redeemable at a premium of 10%.

(iii) When Debentures are issued at a premium of 20% to the vendor for the purchase
of machinery of ` 12,00,000. (3)
9. Complete the following Journal entries:

JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)

2018
April 1 ? ...Dr. 1,36,000
To Able’s Capital A/c 1,00,000
To ? 36,000
(Being the amount of premium for goodwill and capital brought in by Able)
April 1 ? ...Dr. ?
To Strong’s Capital A/c ?
To Weak’s Capital A/c ?
(Being the premium for goodwill credited to the old partners on the basis of
their sacrificing ratio, i.e., 1 : 9)
April 1 ? ...Dr. ?
? ...Dr. ?
To ? ?
(Being the withdrawal of premium money by the partners)
(3)

10. Little Comforts Ltd. has authorised capital of ` 5,00,000 divided into equity shares
of ` 10 each. The company offered for subscription shares of ` 3,00,000 at par.
The issue was fully subscribed. Amount payable on application was ` 2 per share.
` 4 per share were payable on allotment and balance on first and final call. A shareholder
holding 300 shares failed to pay the allotment. His shares were forfeited. The company
has not made the first and final call yet.

Show how the ‘Share Capital’ will be shown in the company’s Balance Sheet.
Or
Alpha Ltd. has 5,000; 10% Debentures of ` 1,000 each due for redemption on
31st March, 2018 at a premium of 10%.

The directors decided to transfer the amount to Debentures Redemption Reserve on
31st March, 2017. On 1st April, 2017, the company invested the necessary amount
in 9% bank fixed deposit as per the provisions of the Companies Act, 2013. Tax was
deducted at source by bank on interest @ 10% p.a.
Pass the necessary Journal entries for redemption of debentures. Ignore entries relating
to writing off loss on issue of debentures and interest paid on debentures. (3)