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Mehar Ltd issued rupees 100000 12% debentures of rupees 100 each at a premium of 5% it redeemable at a premium of 2%. 12% debentures were issued at a discount of 10% to a vendor of machinery for payment of 900000 issue of 10,000 11% debentures of rupees 100 each as Collateral in favour of state Bank off India Company opted to pass necessary entry for issue of debentures?
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Mehar Ltd issued rupees 100000 12% debentures of rupees 100 each at a ...
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Issue of Mehar Ltd's Debentures
Entry for 12% Debentures Issued at a Premium of 5%
The following entry records the issue of 1000 debentures of Mehar Ltd at a premium of 5%:
Date: [Date of Issue]
Debenture Subscription Account Dr. 105000
To Debentures Account 100000
To Security Premium Reserve Account 5000
(Being the issue of 1000 debentures of Rs. 100 each at a premium of 5%)
Note: Debenture Subscription Account represents the amount received from subscribers of debentures before the allotment of debentures. Security Premium Reserve Account is a reserve created out of the premium received on the issue of debentures and can be used for the redemption of debentures or the issue of bonus shares.
Entry for Redemption of 12% Debentures at a Premium of 2%
The following entry records the redemption of 1000 debentures of Mehar Ltd at a premium of 2%:
Date: [Date of Redemption]
Debentures Account Dr. 102000
Security Premium Reserve Account Dr. 3000
To Debenture Redemption Reserve Account 100000
(Being the redemption of 1000 debentures of Rs. 100 each at a premium of 2%)
Note: Debenture Redemption Reserve Account is a reserve created out of the profits of the company and can be used for the redemption of debentures.
Entry for 12% Debentures Issued at a Discount of 10%
The following entry records the issue of 12% debentures of Mehar Ltd at a discount of 10% to a vendor of machinery for payment of Rs. 900000:
Date: [Date of Issue]
Vendor Account Dr. 900000
Discount on Issue of Debentures Account Dr. 100000
To Debentures Account 1000000
(Being the issue of 10000 debentures of Rs. 100 each at a discount of 10% to a vendor of machinery for payment of Rs. 900000)
Note: Discount on Issue of Debentures Account is a nominal account and represents the loss incurred by the company due to the issue of debentures at a discount. This account is closed by transferring its balance to the Profit and Loss Account at the end of the year.
Entry for 11% Debentures Issued as Collateral
The following entry records the issue of 11% debentures of Mehar Ltd as collateral in favour of State Bank of India for securing a loan:
Date: [Date of Issue]
State Bank of India Account Dr. [Amount of Loan]
To Debentures Account [Amount of collateral]
(Being the issue of 10000 debentures of Rs. 100 each as collateral in favour of State Bank of India for securing a loan)
Note: Collateral refers to the security given by the borrower to the lender for the repayment of the loan. In this case, Mehar Ltd has given 11% debentures as collateral to State Bank of India for securing a loan.
Issue of Mehar Ltd's Debentures
Entry for 12% Debentures Issued at a Premium of 5%
The following entry records the issue of 1000 debentures of Mehar Ltd at a premium of 5%:
Date: [Date of Issue]
Debenture Subscription Account Dr. 105000
To Debentures Account 100000
To Security Premium Reserve Account 5000
(Being the issue of 1000 debentures of Rs. 100 each at a premium of 5%)
Note: Debenture Subscription Account represents the amount received from subscribers of debentures before the allotment of debentures. Security Premium Reserve Account is a reserve created out of the premium received on the issue of debentures and can be used for the redemption of debentures or the issue of bonus shares.
Entry for Redemption of 12% Debentures at a Premium of 2%
The following entry records the redemption of 1000 debentures of Mehar Ltd at a premium of 2%:
Date: [Date of Redemption]
Debentures Account Dr. 102000
Security Premium Reserve Account Dr. 3000
To Debenture Redemption Reserve Account 100000
(Being the redemption of 1000 debentures of Rs. 100 each at a premium of 2%)
Note: Debenture Redemption Reserve Account is a reserve created out of the profits of the company and can be used for the redemption of debentures.
Entry for 12% Debentures Issued at a Discount of 10%
The following entry records the issue of 12% debentures of Mehar Ltd at a discount of 10% to a vendor of machinery for payment of Rs. 900000:
Date: [Date of Issue]
Vendor Account Dr. 900000
Discount on Issue of Debentures Account Dr. 100000
To Debentures Account 1000000
(Being the issue of 10000 debentures of Rs. 100 each at a discount of 10% to a vendor of machinery for payment of Rs. 900000)
Note: Discount on Issue of Debentures Account is a nominal account and represents the loss incurred by the company due to the issue of debentures at a discount. This account is closed by transferring its balance to the Profit and Loss Account at the end of the year.
Entry for 11% Debentures Issued as Collateral
The following entry records the issue of 11% debentures of Mehar Ltd as collateral in favour of State Bank of India for securing a loan:
Date: [Date of Issue]
State Bank of India Account Dr. [Amount of Loan]
To Debentures Account [Amount of collateral]
(Being the issue of 10000 debentures of Rs. 100 each as collateral in favour of State Bank of India for securing a loan)
Note: Collateral refers to the security given by the borrower to the lender for the repayment of the loan. In this case, Mehar Ltd has given 11% debentures as collateral to State Bank of India for securing a loan.
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Mehar Ltd issued rupees 100000 12% debentures of rupees 100 each at a ...
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Mehar Ltd issued rupees 100000 12% debentures of rupees 100 each at a premium of 5% it redeemable at a premium of 2%. 12% debentures were issued at a discount of 10% to a vendor of machinery for payment of 900000 issue of 10,000 11% debentures of rupees 100 each as Collateral in favour of state Bank off India Company opted to pass necessary entry for issue of debentures?
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Mehar Ltd issued rupees 100000 12% debentures of rupees 100 each at a premium of 5% it redeemable at a premium of 2%. 12% debentures were issued at a discount of 10% to a vendor of machinery for payment of 900000 issue of 10,000 11% debentures of rupees 100 each as Collateral in favour of state Bank off India Company opted to pass necessary entry for issue of debentures? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Mehar Ltd issued rupees 100000 12% debentures of rupees 100 each at a premium of 5% it redeemable at a premium of 2%. 12% debentures were issued at a discount of 10% to a vendor of machinery for payment of 900000 issue of 10,000 11% debentures of rupees 100 each as Collateral in favour of state Bank off India Company opted to pass necessary entry for issue of debentures? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mehar Ltd issued rupees 100000 12% debentures of rupees 100 each at a premium of 5% it redeemable at a premium of 2%. 12% debentures were issued at a discount of 10% to a vendor of machinery for payment of 900000 issue of 10,000 11% debentures of rupees 100 each as Collateral in favour of state Bank off India Company opted to pass necessary entry for issue of debentures?.
Mehar Ltd issued rupees 100000 12% debentures of rupees 100 each at a premium of 5% it redeemable at a premium of 2%. 12% debentures were issued at a discount of 10% to a vendor of machinery for payment of 900000 issue of 10,000 11% debentures of rupees 100 each as Collateral in favour of state Bank off India Company opted to pass necessary entry for issue of debentures? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Mehar Ltd issued rupees 100000 12% debentures of rupees 100 each at a premium of 5% it redeemable at a premium of 2%. 12% debentures were issued at a discount of 10% to a vendor of machinery for payment of 900000 issue of 10,000 11% debentures of rupees 100 each as Collateral in favour of state Bank off India Company opted to pass necessary entry for issue of debentures? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mehar Ltd issued rupees 100000 12% debentures of rupees 100 each at a premium of 5% it redeemable at a premium of 2%. 12% debentures were issued at a discount of 10% to a vendor of machinery for payment of 900000 issue of 10,000 11% debentures of rupees 100 each as Collateral in favour of state Bank off India Company opted to pass necessary entry for issue of debentures?.
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Mehar Ltd issued rupees 100000 12% debentures of rupees 100 each at a premium of 5% it redeemable at a premium of 2%. 12% debentures were issued at a discount of 10% to a vendor of machinery for payment of 900000 issue of 10,000 11% debentures of rupees 100 each as Collateral in favour of state Bank off India Company opted to pass necessary entry for issue of debentures?, a detailed solution for Mehar Ltd issued rupees 100000 12% debentures of rupees 100 each at a premium of 5% it redeemable at a premium of 2%. 12% debentures were issued at a discount of 10% to a vendor of machinery for payment of 900000 issue of 10,000 11% debentures of rupees 100 each as Collateral in favour of state Bank off India Company opted to pass necessary entry for issue of debentures? has been provided alongside types of Mehar Ltd issued rupees 100000 12% debentures of rupees 100 each at a premium of 5% it redeemable at a premium of 2%. 12% debentures were issued at a discount of 10% to a vendor of machinery for payment of 900000 issue of 10,000 11% debentures of rupees 100 each as Collateral in favour of state Bank off India Company opted to pass necessary entry for issue of debentures? theory, EduRev gives you an
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