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You are required to pass journal entries to, record the following issue of debentures ., , (a) Zoom Ltd. issues 6,000, 12% Debentures, , of 100 each at par redeemable after 5, years also at par., , (b) Zola Ltd. issues 5,000, 13% Debentures, of = 100 each at a discount of 10% to be, redeemed at par after 7 years., , (c) Zubic Ltd. issues 11% Debentures of the, total face value of =12,00,000 at a premium, of 5% to be redeemed at par after 6 years., , (d) Ruby Ltd. issues = 5,00,000, 12%, Debentures at a premium of 5% to be, , redeemed at 10% premium after 10 years., , (e) Emerald Ltd. issues 3,000, 9%, Debentures of = 100 each at a discount of, 7% to be redeemed at a premium of 10%, , after 4 years.

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Q. 38. Bright Ltd. issued 5,000; 10% Debentures of % 100 each on 1st April, 2020. The issue was fully subscribed. As per the terms of issue, interest on the, debentures is payable half-yearly on 30th September and 31st March., , Pass necessary Journal entries related to the debenture interest for the year, , ending 31st March, 2021 and transfer of interet on debentures of the year to the, Statment of Profit and Loss., , Sol. W. Note. —, (i) Half-Yearly interest on Deb. = & [(5,000 = 100) x (10%) = (6/12)] = % 25,000, Journal, , | Particulars CL LF | Dr (®)|_ CR), 2020-21, , 30/9/20 | Debenture Interest A/c, To Debentureholder Alc, (Being amt. of deb. interest due), , Debentureholders A/c, , To Bank A/c, (Being amt. of Deb. interest paid), , 31/3/21 | Debenture Interest A/c, To Debentureholders A/c, (Being amt. of deb. interest due), , , , , , , 25,000, , , , 25,000, , , , , 25,000, , RUCHI ACADEMY, , , , , , , Debentureholders A/c Dr., To Bank A/c, , (Being amt. of Deb. interest Paid), , Stat. of Profit & Loss Dr., To Debenture Interest A/c, (Being amt. of Deb. int. trans. to P & L), , 25,000, , , , 50,000

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Dr, , Q. 39. On Ist April, 2015, V.V.L. Ltd. issued 1,000, 9% Debentures of = 100, each at a discount of 6%, redeemable at a premium of 10% after three years. Pass, necessary Journal entries for the issue of debentures and debenture interest for, the year ended 31st March, 2021, assuming that interest is payable on 30th, September and 31st March The company closes its books on 31st March every, year. (Delhi 2017), , Sol. Working Note—, , () Amt. of 9% Debenture = 1,000 x 100 = 1,00,000, , (ii) Amt. of Discount = 1,00,000 x 6% = = 6,000, , (i) Amt. of Premium of Redemption = 1,00,000 = 10% = & 10,000, , (wv) Amt. of Interest for 6 months = & [1,00,000 x 9% x (6/12)] = = 4,500, , In the books of V.V.L. Ltd., , , , Journal, , , , Date |, , 2015-16, 1/4, , Particulars LF] Dr.(@)| Cr. (®), , , , , , , , Bank A/c 94,000, , To 9% Deb. App. & Allot. A/c, (Being amt. of debenture application & allotme:, receive), , 9% Debenture Application & Allotment A/c Dr., Loss on Issued of 9% Debenture A/c Dr., To 9% Debenture A/c, , To Premium on Redemp. A/c, (Being amt. of 9% deb. app. & Allotment due), , Interest on Debenture A/c Dr., ‘ To Debenture holders A/c, (Being 6 month interest due to deb. holders), , Debenture holders A/c _ Dr., To Bank A/c, , (Being amt. payable to D/H paid), Interest on Debenture A/c Dr., , To Debenture holders A/c, (Being amt. due to D/H for interest), , 31/3 | Debenture hoders A/c Dr., To Bank A/c, (Being amt. paid to D/H), , 31/3 | Statement of Profit & Loss A/c _, To Interest on debentures A/c, , (Being amt. of debenture interest transferred, to P&L A/c), , , , 94,000, , , , , , , , , , , , 94,000 |, 16,000, , 1/4, , 1,00,000, 10,000, , , , 30/9 4,500, , 4,500, , , , , , 30/9 4,500, , 4,500, , , , 31/3 4,500 |, , 4,500, , , , 4,500, 4,500, , , , Dr. 9,000, , 9,000