AMITY INTERNATIONAL SCHOOL, NOIDA HOLIDAY HOMEWORK (ACCOUNTANCY – XII

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ASSIGNMENT – 1 (ISSUE OF SHARES)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) (28) (29) (30) What is meant by a Company? What is meant by Share? What are the two types of shares which a company can issue? Differentiate between Equity Shares and Preference Shares on the basis of (a) Voting Right; (b) Right to Dividend; (c) Rate of Dividend (d) Convertibility. What is meant by perpetual succession of a company? Why would investor prefer to invest in shares of a company rather than in its debentures? What is meant by the Authorised Share Capital? What does paid-up Capital mean? What is Share Certificate? Differentiate between Reserve Capital and Capital Reserve on the basis of (a) Meaning; (b) Creation; (c) Optional/ Mandatory; (d) Special Resolution; (e) Use; and (e) Disclosure. What is Minimum Subscription? State briefly SEBI guidelines relating to it? Differentiate between Over-Subscription and Under-Subscription of shares on the basis of: (a) Shares Applied; (b) Acceptance; (c) Refund. What is meant by Issue of Shares for Consideration other than cash? What is meant by Private Placement of Shares? What is meant by Right Issue of Shares? What is meant by Sweat Equity Shares? State the purposes for which the securities premium can be utilized under Section 77 A and 78 of Companies Act, 1956. State the provisions of the Companies Act, 1956 for the Issue of Shares at Discount. State the maximum amount of discount can be offered at the time of reissue of shares. What is meant by the Public Subscription of Shares? What is meant by Buy Back of Shares? Which section of the Companies Act, 1956 is applicable on it? What is meant by Escrow Account? Give any three alternatives available to a company for the allotment of shares in case of oversubscription. When share application money becomes part of Share Capital? State the provisions mentioned in Table – A relating to: (a) Interest on Calls-in- Arrear and Calls –inAdvance; (b) Minimum time interval between two consecutive share calls; (c) Prospectus. What is meant by Surrender of Shares? Where would you transfer the balance left in the forfeited Shares Account after the reissue of Forfeited Shares? What is meant by Employees Stock Option Scheme? Under which account you will debit Discount on reissue of Shares? How can a company use cash received against Securities Premium? How will you show (a) Calls – in – Arrear; (b) Calls – in – Advance; (c) Discount on Issue of Shares; (d) Share Forfeited Account; (e) Securities Premium; (f) Capital Reserve; in the Balance Sheet of a company?

issued 20. Pranali Ltd. 50 each at a discount of 6%. prepare cash book and show the Balance Sheet. 12. All the dues were duly received. 8 on allotment and balance in two equal calls. Record necessary journal entries. acquired the business of Samvartika Ltd. 2 on application. for the purchase consideration of Rs. issued a prospectus inviting application for 40. 2012) and Final Call Rs.00.000 equity shares of Rs. Interest on Calls -in –Advance: Shiv – Rs. 1) (2) (3) (4) (5) (6) (7) (8) (9) (10) . Record necessary journal entries. 20 each at a premium of 20%. to whom 100 shares were allotted.000 by cheque.000 shares.00. Record necessary journal entries. Interest on Calls -in -arrear Rs. 30 each at a discount of Rs. 6. 50 each at maximum discount allowed by the Companies Act. 5 and Shantanu . 3 and on first and final call the balance amount.000 which is payable as follows: (a) Rs. Allotment was made to all applicants. issued 10. Sushant Ltd issued 50. 2012). On Allotment Rs.) Nadeem Ltd issued 5.000 equity shares of Rs.000 shares and all of these were accepted.000. Aarushi Ltd. 2 (1st April. Expense on issue of shares amounted to Rs.00. 2. Agam Ltd. Rs. 2012 with the interest as per the provisions of Table – A of the Companies Act. All the money was duly received. 3 per share on which amount is payable is as follows: Rs. and show the balance sheet. 90. (Ans. 4 on First call and balance on final call.000 shares of Rs. 3 on application.33. 4 (1st March. Interest was paid on 1st April. Public subscribed for all the shares and the whole amount is payable at application only.000 equity shares of Rs. 2012) and Final Call Rs. on Allotment Rs. On Allotment Rs. Record necessary journal entries. Give necessary journal entries prepare ledger account (cash book) only and Balance Sheet of the company. But she paid the unpaid calls money on 1st August. has issued 10. paid the full amount on application and Shantanu. 8. 10 each payable as follows: Rs. paid the final call money on allotment. 2 (1st June. NOIDA HOLIDAY HOMEWORK (ACCOUNTANCY – XII) ASSIGNMENT – 2 (ISSUE OF SHARES) (1) Archie Ltd.000 shares of Rs. 2012). 1.000 from Vipul Ltd. Anand Ltd. Rs. Issue was fully subscribed and money was duly received. Record necessary journal entries. Alabhya Ltd. issued 10.AMITY INTERNATIONAL SCHOOL. 3 on allotment and balance on two equal calls. 1956. Record necessary journal entries.Rs. Payment was made as follows: On application Rs. 20 each at 20% premium on which amount payable is as follows: Rs. 2012 as per the provisions of Table – A of the Companies Act. Rs. Record necessary journal entries. 4 (1st January. 4 on application. invited application for 40. 3 (1st February. Public subscribed for all the shares and the whole amount is payable at application only. 2 on allotment. 20.000 by paying Rs. 5 (1st March. 1956. has purchased furniture worth Rs. Shiv. ( Ans.000 and (c) balance through issue of shares of Rs. Yoshita Ltd. 2012). Abeer Ltd. to whom 500 shares were allotted. Record necessary journal entries. The applications were received for 36.000 Preference Shares of Rs. 10 at a discount of 10% payable as follows: On Application Rs. Record necessary journal entries.00.3. at Rs.000 shares of Rs.000 shares of Rs. prepare cash book and show the Balance Sheet. prepare cash book and show the Balance Sheet.000 in cash and balance by issuing equity shares of Rs. Applications were received for 40. 10 each on which payable is as follows: On application Rs. 40. Rs. Brinda was allotted 500 shares failed to pay the final call money on the due date. 10 each. 2012). (b) by accepting a bill for Rs. 10 each at 10% discount for the balance amount.

The final call of Rs. Rs. 100 of these shares were reissued @ Rs.000 equity shares of Rs. All the shares were subscribed and allotted.000 shares of Rs 10 each payable as follows: Rs. 2 on allotment. Each at Rs. 10 each. Balance Sheet Rs. 11 per share fully paid up. 400 of these shares were reissued at Rs. 8 per share fully paid up. (b) Rs.000 shares Rs.000 shares held by Sarvagya. 2012. 3 and On Final Call Rs. These shares were re-issued at: (a) Rs. (c) Rs. Capital Reserve – Rs.400). 8 paid up for Rs..92. 8. (d) Rs.92.000 shares which were allotted. On First Call Rs. 10 each issued at a discount of Re. 8 per share has been paid and these shares were reissued to Sarthak at Rs. 4 on application.000. 1. Was established with an authorized capital of Rs. These shares were forfeited and out these 300 shares were reissued at Rs.300).000 shares Rs. Deepakshi the holder of 500 shares has not paid both the calls. Balance Sheet – Rs. 3 per share has not yet been made. Rs. Rs. Journalise the transactions to record the forfeiture and reissue. 2012. 7 per share. Give Journal entries. Calls were duly made but a shareholder holding 1.200). 7 per share fully paid up. Give the Journal entries in the books of the company. show the working clearly. (Ans. 2. Out of these 60 shares were reissued at Rs. 1. 2 per share. 4 (including premium). 10. 8 per share as fully paid. Soham Ltd. 2.000 equity shares of Rs 10 each at par payable as follows: Rs. 10 each. 21 per share fully paid. Capital Reserve Rs. Mahima Ltd. 7 per share. 240) Anjali Ltd. (Ans. prepare Cash Book and also give the Balance Sheet of the company. (c) Rs. The amounts received in respect of these shares were as follows: On 24. 32. Cash Bok total Rs. 2. (Ans.500. Issued 80. Record necessary journal entries.600.000) Agam Ltd. All the shares were subscribed and allotted. (Ans.AMITY INTERNATIONAL SCHOOL. Journalise the above transactions regarding the forfeiture and reissue. issued at a discount of 10%. (b) Rs. The public applied for 90. and 600 shares reissued at Rs. 8 per share. Rs.500). 2 on allotment. 3 to be paid three months after the first call. Journalise these transactions and also prepare Cash Book and Balance Sheet. (Ans. (2) (3) (4) (5) (6) (7) (8) . 8 paid-up. (b) Rs. invited applications for 10. 8 paid up for Rs. 10 to the public on the following terms: Rs. (Ans. 2 to be paid two months after allotment. 10 per share fully paid up. 4 on first call and balance on final call. Capital Reserve Rs. (c) Rs. 1. Record necessary journal entries in all the above cases. 11 per share payable as follows: On application Rs. All the money due on allotment was received by 15th May.Rs. 8. 7 per share. 2 to be paid on allotment. Capital Reserve Rs. Capital Reserve (a) Rs. and Rs.00. Forfeited 150 shares of Rs. Varun the holder of 400 shares failed to pay both the calls and his shares were forfeited. Subsequently. 1 per share. On 5. These shares were forfeited and out of these 500 shares were reissued at: (a) Rs. 500. 1. Rs. (b) Rs. The company had called-up only Rs. forfeited 1. On 1. Rs. 5 per share.000 shares of Rs.000 shares Rs. 2. Rs. 8 per share fully paid up.000. On 5. (Ans. Final call of Rs. All the shares were subscribed and money due was duly received except allotment and first call money on 1.500 shares failed to pay the calls. 8 per share. 1. These shares were allotted to Sanchit. Kavita Ltd. for non-payment of the first call of Rs. 2 each has not been made on these shares. 600. 2 on application. 10 per share fully paid up.00. (d) Rs.000 and (d) NIL). who did not pay the first call of Rs. Forfeited 100 shares of Rs. 2 on allotment. 6 per share. (d) Rs. Alpha Ltd. On Allotment Rs. 7 per share. Shipra Ltd. 1. the allotment took place on 1st May. Offered 1.000 divided into shares of Rs. Rs 7 paid up. NOIDA HOLIDAY HOMEWORK (ACCOUNTANCY – XII) ASSIGNMENT – 3 (ISSUE OF SHARES) (1) Saubhagya Ltd. 5 per share for the non-payment of the second and final call of Rs.99.000. (c) Rs. (Ans. 8 per shares fully paid up. Capital Reserve (a) . Capital Reserve Rs. 20 each issued at a premium of Rs. 2 on first call and Rs. 3 on application.000 shares on which less than Rs. 4 per share. 2 on final call. 3 to be paid on application. as Rs. 3 on first call and balance on final call.000 shares of Rs.000 shares were issued and subscribed for by the public payable as Rs. 3. 1 per share fully paid up. Invited application for 20.400).000 share full amount. The directors forfeited 3. 2. 10.

50.000 shares were allotted 40. ¾ of the forfeited shares were reissued as fully paid-up at a price that made it necessary to utilize the share forfeiture account to the extent of Rs. The reissued shares includes all the shares of Avi. payable as under: On 2nd and final call – 20% of Face Value. Applications for 1. The amount was payable as follows: On Application Rs.000. due to non-payment of such amount. 3 on Allotment and balance on the first and final call. 10 each at a discount of Re 1 per share. Invited applications for issuing 70. 3 on allotment (including Re 1 premium). 8. (Ans. 15 (including premium Rs.000 shares failed to pay the first and final call. Shishir the holder of 3.000 equity shares of Rs. On the failure to pay the first call. Some shares were forfeited on which Rs. 4 on application (including Re. payable as follows: Rs. paid only Rs.50 per share. 10 each at a premium of Rs. Applications were received for 40. On Allotment Rs. who belongs to the first category and allotted 300 shares. 4.00.000 shares were rejected and pro-rata allotment was made to the remaining applicants on the following basis: (i) applicants for 80. 1 premium). Capital Reserve Rs.000 shares were allotted 60.800). forfeited 2. 50 per share fully paid up. 1). 3. 8) and On first and final call – balance. Rs. the first and final call was made. Capital Reserve Rs. 8 per share) Shantam Ltd. 10 (including premium Rs. 12 per share fully paid up. Afterwards. On 3rd October.400 shares of Rs. (Ans. 2012. issued 10.000 equity shares of Rs. Share forfeited A/C: Akhil Rs. Applications were received for 65. 5 per share. Rs. 2 on Application.000 equity shares of Rs. The amount payable as follows: Rs. The forfeited shares were reissued @ Rs. On previous three stages – Balance of Face Value + Premium on Allotment. 4.000 shares and (ii) Applicants for 60. 3) and balance including premium on the first and final call. 2 each. Suraj Ltd.500 in shares forfeited account. failed to pay the first call money. Akhil who had applied for 3. 201. (Ans. Vaishnavi. Aashita who belonged to the category second was allotted 200 shares also failed to pay the first call money. leaving a balance of Rs.000 shares were re-issued at Rs.500 were due on second and final call. 10% of the total applications were rejected and balance were allotted shares on pro-rata basis. 6.600. Vasudevan Ltd.00.000 equity shares of Rs. Share Forfeited account Rs. The shares were issued at a premium of Rs. All the forfeited shares were reissued as fully paid at an amount. His shares were forfeited immediately after allotment.000 shares failed to pay the allotment money and his shares were immediately forfeited.000 shares failed to pay the allotment money.000 shares. Reissue price Rs. 8 per share (including premium of Rs. his shares were also forfeited.900. Their shares were forfeited. Record necessary journal entries.100).000 shares and allotment was made to all the applicants. Invited applications for the issue of 30. Abhishek Rs.000 shares were received. 35 per share. Applications for 10.000 on allotment. 4 per share. 4.000 shares. 10 each at a premium of Rs. Viraj Ltd. (2) (3) (5) (6) (7) .000 shares. 3 on final call (including premium Re. Record necessary journal entries related to forfeiture and reissue of shares. 2. 10 each for non-payment of second and final call of Rs.500. 10 each. His shares were also forfeited. 4. Abhishek who was allotted 2. 1 premium). Record necessary journal entries. Assuming that forfeited shares were reissued on 24th October. 4 on first call (including Re. invited applications for 1.AMITY INTERNATIONAL SCHOOL. The amount payable is as follows: On application and allotment Rs. 12). 1. Out of the forfeited shares. NOIDA HOLIDAY HOMEWORK (ACCOUNTANCY – XII) ASSIGNMENT – 4 (ISSUE OF SHARES) (1) The directors of Shweta Ltd. Lydia Ltd. Record the necessary journal entries in the books of Shweta Ltd.000 equity shares of Rs. Record necessary journal entries. Made an issue of 3. 4. Rs. Rs. The shares were originally issued at par. 9. 10 each at a premium of Rs. Avi the holder of 2.

10 each issued at par for the non-payment of second and final call of Rs. 2 on application. failed to pay the allotment money and his shares were forfeited after allotment. 3.80. 300 of the forfeited shares were reissued @ Rs. 12. (Ans. Having authorised share capital of Rs.000) The directors of Arzish Ltd. Invited applications for 1. 3). 50. These shares were reissued on 12th August. Directors made pro-rata allotment to the applicants of 2. Out of the forfeited shares some shares were reissued in such a way that Rs. Rs. (Ans.000 divided into (i) 4.000 forfeited shares were reissued as fully paid on receipt of Rs.200 will remain in the share forfeited amount and Rs. Capital Reserve – Rs. 9 per share. Lubhavani Ltd. 2012. Forfeited 500 shares of Rs. Balance Sheet – Rs. 10 each and (ii) 10.000 shares did not pay the final call. 8 on allotment and balance on first and final call.40.000 shares. These shares were originally issued at Rs. 8 per share (including premium Rs.000 equity shares of Rs. Rs. 10. The directors of Shefali Ltd.000 shares were received. 2 per share. 10 each. to whom 6. 8. 3. A portion of the excess money paid on application was to be adjusted towards the money due on second and final call. 3. Applications for 20. 44.500 shares failed to pay the two calls and his shares were also forfeited.(8) (9) (10) (11) (12) Applications were received for 4. These shares were originally allotted to the shareholder in the ratio of 6:5.000 shares.000 shares were allotted 60.60. prepare cash book and show the Balance Sheet of the company. 12 per share fully paid up. (Ans.7 per share). 5 per share. On 28th June. Shobhit Ltd. 10 each. 100 each. 9 per share.000 shares were rejected and their money was refunded. 900). who belonged to the first category and was allotted 300 shares failed to pay the first and final call money. of which applications for 50. Rs.00. Company purchased a building for Rs. The forfeited shares were reissued at Rs. Sakshi. 2012. Record necessary journal entries. 6. 4. Tanishque.000 and discharged the purchase consideration fully by allotment of 3. All the forfeited shares were reissued to Shradha as fully paid for Rs. 4 per share payable as Rs. Their shares were forfeited. 3 per share. Capital Reserve-Rs.00.00. 11 per share with 200 shares reissued @ Rs. Record necessary journal entries. 300. Capital Reserve – Rs. Rest of the applicants were issued shares on pro-rata basis and their excess money was adjusted towards allotment. The shares were issued at premium of Rs. On application the shareholder of these shares had applied for more shares but was allotted only 500 shares (pro-rata allotment).50 per share. forfeited 700 equity shares due to non payment of final call money of Rs. Applications for 1.000 equity shares of Rs.000 equity shares at a premium of Rs.100) . The amount was payable as follows: On application and allotment Rs.000 shares. 7 called up due to the non-payment of allotment money of Rs. Akshat. Farhan. On first and final call balance (including premium).000 shares were rejected and pro-rata allotment was made to the remaining applicants on the following basis: Applicants for 80. Public applied for 3.00.300).000 shares were allotted 40.50.000 12% preference shares. 5 per share. 10 per share. Record necessary journal entries. 3 premium out of the total premium of Rs. the whole of Tanishque’s shares being included. Rs. Rishabh who had 500 shares could not pay allotment and call money and his shares were forfeited. 41.000 shares and Applicants for 60. (Ans. 1 premium yet to be collected. Forfeited 5. Excess application money was retained for allotment.800 will be transferred to capital reserve. who was allotted 3. (Ans. who applied for 10.000 shares and rejected rest of the applications. 5 per share including Rs. Saumya who belonged to the second category and was allotted 200 shares also failed to pay the first call and final call money.500 to Capital Reserve after reissuing all the forfeited shares as fully paid-up. Capital Reserve Rs. The excess money received at application & allotment may be utilized towards the calls. The company finally transferred Rs. Tushar also not paid fist and final call on 250 shares but his shares were not forfeited. You are required to ascertain the price at which forfeited shares were reissued and record the necessary journal entries.000 12% preference shares of Rs.000 shares of Rs.00.000. This portion of excess money was Rs. Medhavi Ltd. It also issued 2.000 shares were allotted.

2000 regarding Debenture Redemption Reserve (DRR)? State. Which proposal is better and why? What is meant by purchase consideration? Ayushe Ltd.. (f) Convertibility. (b) Redemption. (e) Coupon Rate. What is nature of Premium on Redemption of Debentures? Differentiate between ‘Premium on Issue of Debentures’ and ‘Premium on Redemption of Debenture’? List any four types of companies which are exempted from the obligation of creating Debenture Redemption Reserve (DRR) by the SEBI? What is meant by DRR? What are the provisions of the Companies (Amendment) Act. The director of the company is of the opinion that interest on debenture is payable only when the company earns profit. NOIDA HOLIDAY HOMEWORK (ACCOUNTANCY – XII) ASSIGNMENT – 5 (ISSUE AND REDEMPTION OF DEBENTURES) What is meant by Debentures and Bonds? Briefly explain various types of debentures on the basis of: (a) Security. in brief.000 before payment of interest on debentures. Do you agree? When does loss on issue of debenture arise? Distinguish between First Debentures and Second Debentures. the SEBI guidelines regarding Debenture Redemption Reserve? State briefly various methods of redemption of debentures. Define “Charge”. What is the nature of Interest on Debentures? What are the alternatives available to a company for the allotment of debentures when there is oversubscription of debentures? If the purchase consideration can be settled by issue of debentures at premium. how will you determine the number of debentures to be issued? In which account excess of purchase consideration over net assets is debited? In which account excess of net assets over purchase consideration is credited? Do the debenture holders have priority over shareholders in repayment during winding up of a company? Why? A debenture holder does not have a right to vote at the General Meeting. while Masoom.(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) (28) AMITY INTERNATIONAL SCHOOL. Distinguish between fixed charge and floating charge. Bhavnita. (d) Priority. Differentiate between ‘redemption out of profits’ and ‘redemption out of capital’. a director proposes to issue 10% Preference shares. (c) Records. Can the debenture holders’ demand the conversion of the unpaid interest (at the time of redemption) into shares? .00. Wants to raise funds. has incurred a loss of Rs. Why? Mrinalini Ltd. Why are unsecured debentures are less risky than shares? Why would investor prefer to invest partly in shares and partly in debentures of a company? Name the account against which premium on redemption of debentures can be written off. another director of the company recommends to issue 10% debentures. What is meant by ‘Issue of Debentures as Collateral Security”? Explain with the help of an example. State briefly various sources of redemption of debentures. 10.

100 each due for redemption on 31 st March.000 debentures. Assume that Debenture Redemption Reserve has a balance of Rs.000 on that date. Rs. 9% Debentures of Rs.000 through cheque and balance by allotment of 6% Debentures of Rs.000. Garima Ltd. Journalise the above transactions and show how the amounts will appear in the balance sheet? Apoorva Ltd. purchased assets of the book value Rs. 2008.000 from Prashant Ltd. (b) 3. Record the necessary journal entries to record the: (a) Issue of Debentures. if debentures are issued.000. 12% Debentures of Rs 100 each at a premium of 10% but redeemable at par after five years. Record the necessary journal entries for the issue of debentures. but redeemable at a premium of 5% after five years. the amount is payable as Rs. 100 each at 10% discount (on which amount payable is Rs. 8% Debentures of Rs. Issued 10. NOIDA HOLIDAY HOMEWORK (ACCOUNTANCY – XII) ASSIGNMENT – 6 (ISSUE AND REDEMPTION OF DEBENTURES) (1) Masoom Ltd. 8% Debentures at a premium of 10%. issues 5000. 2005. 35 on allotment(including premium) and balance on first and final call.00. Journalise the above transactions. 4.000 to be paid by issuing the debentures of Rs. settled at Rs. 100 each at a premium of 10% redeemable at a premium of 2% after 5 years. 8% Debentures of Rs.000). All allotment was made proportionately. 38. by accepting a bill of exchange and for the balance amount Dakshta Ltd.800 Debentures. Udit Ltd.00. Issued 10. 30. 30 on application. over-subscription being applied to the amount due on allotment. (2) (3) (4) (5) (6) (7) (8) (9) (10) . 8% Debentures of Rs. 40.000.000. 12% Debentures of Rs 100 each at a discount of 5%. DRR – Rs.000 from Mohan Bros. The Debentures are repayable after five years.000 from Poorvi Ltd. Record necessary journal entries. Record necessary journal entries for the issue and redemption of debentures. It was decided to create DRR in for equal annual instalments starting from July 31st. issued 9% Debentures of Rs. 100 each at Rs.80. (Ans. Prarthana Ltd. All money was received except on 100 debentures. (a) 3. Record necessary journal entries. 25 on application. (a) at par.00.000 debentures. and (v) 300. and (b) Repayment of Debentures after the given period.00. 40% of the amount was paid to Poorvi Ltd. 35. 100 each. purchased machinery of Rs. The company allotted debentures to all. Dakshta Ltd.000.000 each at a premium of 25%. (Ans. 40 on allotment and balance in final call) and redeemable at 20% premium. 60 through cash/bank). 100 each at a premium of 30% in favour of Poorvi Ltd. Applications were received for 15. Record necessary journal entries for the issue of debentures. Record necessary journal entries in the books of the company for the redemption of debentures.000. (Ans.000. 100 each on July 31. purchased Plant for Rs. It was agree that purchase consideration. Call was made. 13% Debentures of Rs 100 each as a collateral security to a Bank who has advanced a loan of Rs 25.454 Debentures. (b) at a premium of 10%. Instead of declaring a dividend it decided to redeem its Rs. Sargun Ltd.000 in its Profit and Loss Account.00.00.00. 110 payable Rs. No. (iv) 1. 15% debentures of Rs. All sum due were received by the company on due dates. Record the necessary journal entries at the time of redemption of Debentures. paid Rs. (iii) 5.000. of Debentures – 128). issued 20. Pranay Ltd.AMITY INTERNATIONAL SCHOOL. 50. Rs. 2012. 2. 2.000 to the company for a period of 5 years.000. (ii) 10.000 and took over the liabilities of Rs. 14% Debentures of Rs 100 each issued to a supplier of Machinery costing Rs 95. issues the following debentures(i) 10.. Aneesh Ltd. Goodwill – Rs.000. 2001 which will be redeemed at a premium of 6% on October 31.000. 12% Debentures of Rs 100 each at par but redeemable at a premium of 5 % after five years. had a balance of Rs.20. 3. Applications were received for 4. 2. Ankit Ltd. has 80. 1. 40.

00. 2012.00. on 1st April. had outstanding Rs. 9% Debentures of Rs.00. 100 each at Rs. On 31st December. Record necessary journal entries at the time of redemption of debentures. if equity shares of Rs. 100 each at par. 200 each issued at a discount of 10% and redeemable at par after 5 years were converted into 12% Debentures of Rs. Anshuman Ltd. 100 each at a premium of 10% in full satisfaction of purchase consideration. issued 30. The Debentures were redeemable 3 years later at a premium of 5%. Record necessary journal entries in the books of the company. out profits. On 1st April. 30% holders exercised their option. 10% Debentures of Rs 10 each at 96% and redeemable at 8% premium after 4 years and offered the holders option to convert their holdings into equity shares of Rs.00. 500 each issued at a discount of 10% discount and redeemable at premium of 20% after five years were converted into 12% Debentures f Rs.000. Record necessary journal entries. 4. 35. Instead of declaring a dividend it decided to redeem its Rs. 8% Debentures at a premium of 10%. Journalise the following: (a) 4. 6. 20 each issued as follows: (a) On conversion the shares are issued at par. 2010. Record necessary journal entries both at the time of issue and at the time of conversion under the following situations.000. Shaharyar Ltd.000 in 10% debentures of Rs. 2008. Nikita Ltd. 100 each of which half the amount is due for redemption on 31st March. holders of 1. 2010. holders of 2. 70. it was decided to give the holders of these debentures the following options: (i) To convert their holdings into 9% preference shares of Rs. 500 each redeemable at a premium of 10% on 31st March. (b)3.. 100 each issued at a discount of 10% before maturity. 12% Debentures of Rs.800 debentures accepted equity shares and the remaining debentures were paid through cheque. The company has in its Debenture Reserve Account a balance of Rs. 2012. 500 each outstanding.000 in its Profit and Loss Account. Record necessary journal entries in the books of the company only for the redemption of debentures. redeemed 2.50. 2010. 200 each after 31st March. (b) issued at 25% premium. Tanya Ltd. On 1st January. has issued 20. 500 each at par which were repayable at a premium of 15% on 31st December.000.. Record necessary journal entries to record the above including redemption of debentures.40.000 debenture holders and these debentures were redeemed. 8% Debentures of Rs. These debentures were issued two years earlier at a discount of 5%. if the company follows Section 117 C of the Companies Act 1956. 100 each issued at a discount of 5% and redeemable at par after 5 years were converted into 10% Debentures of Rs. and (c) On conversion the shares are issued at a discount of 5%.000 debentures had expressed their option of 9% preference share. 10% Debentures of Rs. 50. at an agreed value of Rs. (b) On conversion the shares are issued at Rs. issued 12% Debentures of Rs.00.000 out of profits to redeem 100 debentures.000.000. 8% Debentures of Rs. (c)6.000.50. Give the journal entries in all the above cases. the company decided to redeem the above mentioned 8% Debentures as per the terms of issue. 10% Debentures of Rs. 100 each issued at a premium of 25% before maturity. 40.50 per share. 2011. (c) issued at 4% discount.000. 94. 10% Debentures of Rs.000. The company has decided to convert these debentures into shares of Rs.000. On the date of maturity. On 31st March. issued 50. or (iii) To accept cheque. 100 each are: (a) issued at par. 5. has 4.000 for Mitali Ltd.00.(11) (13) (14) (15) (16) (17) (18) (19) (20) Abhilasha Ltd.000 on this date. 500 each by converting them into equity shares of Rs. Nikita Ltd. On 1st April. On 1st January. 2009. an infrastructure company had a balance of Rs.000. 10. Pranjal Ltd. Record necessary journal entries in the books of the company for the redemption of debentures. (ii) To accept equity shares of Rs. The Profit & Loss Account shows a credit balance of Rs 2.000 and liabilities worth Rs. The offer was accepted by the 15. 12. 2007 Karthika Ltd. 50 each at a premium of 20% per share. . 2010 Kartikeya Ltd. 2006 acquired assets of the value of Rs. The company also utilized Rs. 200 each issued at par before maturity.000.

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