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Analyse the case given below and answer the questions that follow :
Nikhil Technologies Ltd. issued 5,000; 9% Debentures of ₹100 each at a premium of ₹20 payable as follows:
(i) ₹40 including premium of ₹10 on application
(ii) ₹40 including premium of ₹10 on allotment
(iii) Balance as first and final call.
Applications were received for 5,000 debentures and allotment was made to all the applicants. All the calls were made, and amounts received.
Q. What amount of the money received in application is transferred to the securities premium reserve account:
  • a)
    ₹5,00,000
  • b)
    ₹50,000
  • c)
    ₹1,00,00
  • d)
    ₹2,00,000
Correct answer is option 'B'. Can you explain this answer?
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Analyse the case given below and answer the questions that follow :Ni...
5000 × ₹10 = ₹50,000
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Analyse the case given below and answer the questions that follow :Ni...
Analysis of the Case:

- Nikhil Technologies Ltd. issued 5,000; 9% Debentures of ₹100 each at a premium of ₹20.
- The payment for the debentures was to be made in three installments: ₹40 including a premium of ₹10 on application, ₹40 including a premium of ₹10 on allotment, and the balance as the first and final call.
- The company received applications for all the 5,000 debentures and made allotment to all the applicants.
- All the calls were made and the amounts were received.

Calculation:

- Total debentures issued: 5,000
- Face value of each debenture: ₹100
- Premium on each debenture: ₹20

Amount received on application:
- Number of debentures applied for: 5,000
- Amount received on application = Number of debentures applied for * Amount payable on application
- Amount payable on application = ₹40 including a premium of ₹10
- Amount received on application = 5,000 * ₹40 = ₹2,00,000

Amount transferred to the securities premium reserve account:
- The premium collected on the issue of debentures is transferred to the securities premium reserve account.
- Premium on each debenture: ₹20
- Total premium collected = Number of debentures issued * Premium on each debenture
- Total premium collected = 5,000 * ₹20 = ₹1,00,000

- However, the premium collected on application is only ₹10 per debenture, while the remaining ₹10 per debenture is collected on allotment.
- Therefore, the amount transferred to the securities premium reserve account is the premium collected on application, which is ₹10 per debenture.

Answer:
The amount of money received in application that is transferred to the securities premium reserve account is ₹50,000 (₹10 per debenture x 5,000 debentures). Thus, option 'B' is the correct answer.
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Analyse the case given below and answer the questions that follow :Nikhil Technologies Ltd. issued 5,000; 9% Debentures of ₹100 each at a premium of ₹20 payable as follows:(i) ₹40 including premium of ₹10 on application(ii) ₹40 including premium of ₹10 on allotment(iii) Balance as first and final call.Applications were received for 5,000 debentures and allotment was made to all the applicants. All the calls were made, and amounts received.Q. What amount of the money received in application is transferred to the securities premium reserve account:a)₹5,00,000b)₹50,000c)₹1,00,00d)₹2,00,000Correct answer is option 'B'. Can you explain this answer?
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Analyse the case given below and answer the questions that follow :Nikhil Technologies Ltd. issued 5,000; 9% Debentures of ₹100 each at a premium of ₹20 payable as follows:(i) ₹40 including premium of ₹10 on application(ii) ₹40 including premium of ₹10 on allotment(iii) Balance as first and final call.Applications were received for 5,000 debentures and allotment was made to all the applicants. All the calls were made, and amounts received.Q. What amount of the money received in application is transferred to the securities premium reserve account:a)₹5,00,000b)₹50,000c)₹1,00,00d)₹2,00,000Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Analyse the case given below and answer the questions that follow :Nikhil Technologies Ltd. issued 5,000; 9% Debentures of ₹100 each at a premium of ₹20 payable as follows:(i) ₹40 including premium of ₹10 on application(ii) ₹40 including premium of ₹10 on allotment(iii) Balance as first and final call.Applications were received for 5,000 debentures and allotment was made to all the applicants. All the calls were made, and amounts received.Q. What amount of the money received in application is transferred to the securities premium reserve account:a)₹5,00,000b)₹50,000c)₹1,00,00d)₹2,00,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Analyse the case given below and answer the questions that follow :Nikhil Technologies Ltd. issued 5,000; 9% Debentures of ₹100 each at a premium of ₹20 payable as follows:(i) ₹40 including premium of ₹10 on application(ii) ₹40 including premium of ₹10 on allotment(iii) Balance as first and final call.Applications were received for 5,000 debentures and allotment was made to all the applicants. All the calls were made, and amounts received.Q. What amount of the money received in application is transferred to the securities premium reserve account:a)₹5,00,000b)₹50,000c)₹1,00,00d)₹2,00,000Correct answer is option 'B'. Can you explain this answer?.
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