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Viram limited issued 50000 5% debentures of 100 each at a discount of 10% payable 30 on application and rest on allotment pass journal enteries and opening balance sheet?
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Viram limited issued 50000 5% debentures of 100 each at a discount of ...
Journal Entries
1. Journal entry for the issue of debentures:
Debit:
- Debenture Account............................................50,00,000 (50000 debentures x Rs. 100 each)
- Discount on Issue of Debentures Account............5,00,000 (10% of 50,00,000)
Credit:
- Debenture Application Account............................15,00,000 (30% of 50,00,000)
- Debenture Allotment Account..............................35,00,000 (70% of 50,00,000)
2. Journal entry for the receipt of application money:
Debit:
- Bank Account...............................................................15,00,000
Credit:
- Debenture Application Account............................15,00,000
3. Journal entry for the allotment of debentures:
Debit:
- Debenture Allotment Account................................35,00,000
Credit:
- Bank Account...............................................................35,00,000
Opening Balance Sheet
Liabilities
- Share Capital
- Equity Share Capital
- Reserves and Surplus
- Long-term Borrowings
- Debentures (50,000 x Rs. 100)......................50,00,000
Assets
- Fixed Assets
- Current Assets
- Bank Account
- Debenture Application Account
- Debenture Allotment Account
- Investments
- Miscellaneous Expenditure
Explanation
- The company issued 50,000 debentures of Rs. 100 each at a discount of 10%.
- The total value of debentures issued is calculated as 50,000 debentures multiplied by Rs. 100, which equals Rs. 50,00,000.
- The discount on the issue of debentures is calculated as 10% of Rs. 50,00,000, which equals Rs. 5,00,000.
- The company received 30% of the total value of debentures on application, which is Rs. 15,00,000.
- The remaining 70% of the total value of debentures is payable on allotment, which is Rs. 35,00,000.
- The journal entry for the issue of debentures records the debenture account and the discount on the issue of debentures account as debits, and the debenture application account and debenture allotment account as credits.
- The journal entry for the receipt of application money records the bank account as a debit and the debenture application account as a credit.
- The journal entry for the allotment of debentures records the debenture allotment account as a debit and the bank account as a credit.
- The opening balance sheet includes the debentures as a long-term borrowing in the liabilities section and the bank account, debenture application account, and debenture allotment account in
1. Journal entry for the issue of debentures:
Debit:
- Debenture Account............................................50,00,000 (50000 debentures x Rs. 100 each)
- Discount on Issue of Debentures Account............5,00,000 (10% of 50,00,000)
Credit:
- Debenture Application Account............................15,00,000 (30% of 50,00,000)
- Debenture Allotment Account..............................35,00,000 (70% of 50,00,000)
2. Journal entry for the receipt of application money:
Debit:
- Bank Account...............................................................15,00,000
Credit:
- Debenture Application Account............................15,00,000
3. Journal entry for the allotment of debentures:
Debit:
- Debenture Allotment Account................................35,00,000
Credit:
- Bank Account...............................................................35,00,000
Opening Balance Sheet
Liabilities
- Share Capital
- Equity Share Capital
- Reserves and Surplus
- Long-term Borrowings
- Debentures (50,000 x Rs. 100)......................50,00,000
Assets
- Fixed Assets
- Current Assets
- Bank Account
- Debenture Application Account
- Debenture Allotment Account
- Investments
- Miscellaneous Expenditure
Explanation
- The company issued 50,000 debentures of Rs. 100 each at a discount of 10%.
- The total value of debentures issued is calculated as 50,000 debentures multiplied by Rs. 100, which equals Rs. 50,00,000.
- The discount on the issue of debentures is calculated as 10% of Rs. 50,00,000, which equals Rs. 5,00,000.
- The company received 30% of the total value of debentures on application, which is Rs. 15,00,000.
- The remaining 70% of the total value of debentures is payable on allotment, which is Rs. 35,00,000.
- The journal entry for the issue of debentures records the debenture account and the discount on the issue of debentures account as debits, and the debenture application account and debenture allotment account as credits.
- The journal entry for the receipt of application money records the bank account as a debit and the debenture application account as a credit.
- The journal entry for the allotment of debentures records the debenture allotment account as a debit and the bank account as a credit.
- The opening balance sheet includes the debentures as a long-term borrowing in the liabilities section and the bank account, debenture application account, and debenture allotment account in
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Viram limited issued 50000 5% debentures of 100 each at a discount of 10% payable 30 on application and rest on allotment pass journal enteries and opening balance sheet?
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Viram limited issued 50000 5% debentures of 100 each at a discount of 10% payable 30 on application and rest on allotment pass journal enteries and opening balance sheet? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Viram limited issued 50000 5% debentures of 100 each at a discount of 10% payable 30 on application and rest on allotment pass journal enteries and opening balance sheet? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Viram limited issued 50000 5% debentures of 100 each at a discount of 10% payable 30 on application and rest on allotment pass journal enteries and opening balance sheet?.
Viram limited issued 50000 5% debentures of 100 each at a discount of 10% payable 30 on application and rest on allotment pass journal enteries and opening balance sheet? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Viram limited issued 50000 5% debentures of 100 each at a discount of 10% payable 30 on application and rest on allotment pass journal enteries and opening balance sheet? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Viram limited issued 50000 5% debentures of 100 each at a discount of 10% payable 30 on application and rest on allotment pass journal enteries and opening balance sheet?.
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