Commerce Exam > Commerce Questions > Tata motors Ltd. invited application for the ...
Start Learning for Free
Tata motors Ltd. invited application for the issue of 3000,10% debenture of Rs. 100/ each at a discount of 10% payable Rs. 30/- on application Rs. 30/- on allotment (after deducting discount) and the balance on first and duly called and paid up. Give journal entries and show hoe debenture account will be shown in the balance sheet of the company?
Most Upvoted Answer
Tata motors Ltd. invited application for the issue of 3000,10% debentu...
Journal Entries:
1) On receipt of application money:
Dr. Bank Account (Application Money) - Rs. 30,000
Cr. Debenture Application Account - Rs. 30,000
2) On allotment of debentures:
Dr. Debenture Allotment Account - Rs. 27,000 (30,000 - 10% discount)
Cr. Debenture Application Account - Rs. 30,000
Cr. Debenture Discount Account - Rs. 3,000
3) On receipt of allotment money:
Dr. Bank Account (Allotment Money) - Rs. 27,000
Cr. Debenture Allotment Account - Rs. 27,000
4) On first call:
Dr. Debenture First Call Account - Rs. X (Balance amount)
Cr. Debenture Allotment Account - Rs. X (Balance amount)
5) On receipt of first call money:
Dr. Bank Account (First Call Money) - Rs. X (Balance amount)
Cr. Debenture First Call Account - Rs. X (Balance amount)
6) On final call:
Dr. Debenture Final Call Account - Rs. Y (Balance amount)
Cr. Debenture First Call Account - Rs. Y (Balance amount)
7) On receipt of final call money:
Dr. Bank Account (Final Call Money) - Rs. Y (Balance amount)
Cr. Debenture Final Call Account - Rs. Y (Balance amount)
Balance Sheet:
The debenture account will be shown in the liabilities side of the balance sheet of the company under the head "Long-term Borrowings" or "Non-Current Liabilities". It will be presented as follows:
Tata Motors Ltd.
Balance Sheet
As of [Date]
Liabilities
Long-term Borrowings:
Debentures:
- 10% Debentures of Rs. 100 each (3000 debentures) - Rs. 30,00,000
Explanation:
- The company issued 3000 debentures of Rs. 100 each at a discount of 10%. The total amount to be raised through the issue of debentures is Rs. 30,00,000 (3000 debentures * Rs. 100).
- The discount of 10% on the face value of the debentures amounts to Rs. 3,00,000 (10% of Rs. 30,00,000).
- The application money payable by each debenture holder is Rs. 30 (discounted from Rs. 100).
- The journal entry for the receipt of application money is recorded by debiting the Bank Account and crediting the Debenture Application Account for the total application money received.
- Upon allotment of debentures, the discount is deducted from the allotment money. The journal entry for the allotment of debentures is recorded by debiting the Debenture Allotment Account and crediting the Debenture Application Account and Debenture Discount Account.
- The allotment money payable by each debenture holder is Rs. 27 (discounted from Rs. 30).
- The journal
1) On receipt of application money:
Dr. Bank Account (Application Money) - Rs. 30,000
Cr. Debenture Application Account - Rs. 30,000
2) On allotment of debentures:
Dr. Debenture Allotment Account - Rs. 27,000 (30,000 - 10% discount)
Cr. Debenture Application Account - Rs. 30,000
Cr. Debenture Discount Account - Rs. 3,000
3) On receipt of allotment money:
Dr. Bank Account (Allotment Money) - Rs. 27,000
Cr. Debenture Allotment Account - Rs. 27,000
4) On first call:
Dr. Debenture First Call Account - Rs. X (Balance amount)
Cr. Debenture Allotment Account - Rs. X (Balance amount)
5) On receipt of first call money:
Dr. Bank Account (First Call Money) - Rs. X (Balance amount)
Cr. Debenture First Call Account - Rs. X (Balance amount)
6) On final call:
Dr. Debenture Final Call Account - Rs. Y (Balance amount)
Cr. Debenture First Call Account - Rs. Y (Balance amount)
7) On receipt of final call money:
Dr. Bank Account (Final Call Money) - Rs. Y (Balance amount)
Cr. Debenture Final Call Account - Rs. Y (Balance amount)
Balance Sheet:
The debenture account will be shown in the liabilities side of the balance sheet of the company under the head "Long-term Borrowings" or "Non-Current Liabilities". It will be presented as follows:
Tata Motors Ltd.
Balance Sheet
As of [Date]
Liabilities
Long-term Borrowings:
Debentures:
- 10% Debentures of Rs. 100 each (3000 debentures) - Rs. 30,00,000
Explanation:
- The company issued 3000 debentures of Rs. 100 each at a discount of 10%. The total amount to be raised through the issue of debentures is Rs. 30,00,000 (3000 debentures * Rs. 100).
- The discount of 10% on the face value of the debentures amounts to Rs. 3,00,000 (10% of Rs. 30,00,000).
- The application money payable by each debenture holder is Rs. 30 (discounted from Rs. 100).
- The journal entry for the receipt of application money is recorded by debiting the Bank Account and crediting the Debenture Application Account for the total application money received.
- Upon allotment of debentures, the discount is deducted from the allotment money. The journal entry for the allotment of debentures is recorded by debiting the Debenture Allotment Account and crediting the Debenture Application Account and Debenture Discount Account.
- The allotment money payable by each debenture holder is Rs. 27 (discounted from Rs. 30).
- The journal
Community Answer
Tata motors Ltd. invited application for the issue of 3000,10% debentu...
Hii
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
Tata motors Ltd. invited application for the issue of 3000,10% debenture of Rs. 100/ each at a discount of 10% payable Rs. 30/- on application Rs. 30/- on allotment (after deducting discount) and the balance on first and duly called and paid up. Give journal entries and show hoe debenture account will be shown in the balance sheet of the company?
Question Description
Tata motors Ltd. invited application for the issue of 3000,10% debenture of Rs. 100/ each at a discount of 10% payable Rs. 30/- on application Rs. 30/- on allotment (after deducting discount) and the balance on first and duly called and paid up. Give journal entries and show hoe debenture account will be shown in the balance sheet of the company? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Tata motors Ltd. invited application for the issue of 3000,10% debenture of Rs. 100/ each at a discount of 10% payable Rs. 30/- on application Rs. 30/- on allotment (after deducting discount) and the balance on first and duly called and paid up. Give journal entries and show hoe debenture account will be shown in the balance sheet of the company? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Tata motors Ltd. invited application for the issue of 3000,10% debenture of Rs. 100/ each at a discount of 10% payable Rs. 30/- on application Rs. 30/- on allotment (after deducting discount) and the balance on first and duly called and paid up. Give journal entries and show hoe debenture account will be shown in the balance sheet of the company?.
Tata motors Ltd. invited application for the issue of 3000,10% debenture of Rs. 100/ each at a discount of 10% payable Rs. 30/- on application Rs. 30/- on allotment (after deducting discount) and the balance on first and duly called and paid up. Give journal entries and show hoe debenture account will be shown in the balance sheet of the company? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Tata motors Ltd. invited application for the issue of 3000,10% debenture of Rs. 100/ each at a discount of 10% payable Rs. 30/- on application Rs. 30/- on allotment (after deducting discount) and the balance on first and duly called and paid up. Give journal entries and show hoe debenture account will be shown in the balance sheet of the company? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Tata motors Ltd. invited application for the issue of 3000,10% debenture of Rs. 100/ each at a discount of 10% payable Rs. 30/- on application Rs. 30/- on allotment (after deducting discount) and the balance on first and duly called and paid up. Give journal entries and show hoe debenture account will be shown in the balance sheet of the company?.
Solutions for Tata motors Ltd. invited application for the issue of 3000,10% debenture of Rs. 100/ each at a discount of 10% payable Rs. 30/- on application Rs. 30/- on allotment (after deducting discount) and the balance on first and duly called and paid up. Give journal entries and show hoe debenture account will be shown in the balance sheet of the company? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Tata motors Ltd. invited application for the issue of 3000,10% debenture of Rs. 100/ each at a discount of 10% payable Rs. 30/- on application Rs. 30/- on allotment (after deducting discount) and the balance on first and duly called and paid up. Give journal entries and show hoe debenture account will be shown in the balance sheet of the company? defined & explained in the simplest way possible. Besides giving the explanation of
Tata motors Ltd. invited application for the issue of 3000,10% debenture of Rs. 100/ each at a discount of 10% payable Rs. 30/- on application Rs. 30/- on allotment (after deducting discount) and the balance on first and duly called and paid up. Give journal entries and show hoe debenture account will be shown in the balance sheet of the company?, a detailed solution for Tata motors Ltd. invited application for the issue of 3000,10% debenture of Rs. 100/ each at a discount of 10% payable Rs. 30/- on application Rs. 30/- on allotment (after deducting discount) and the balance on first and duly called and paid up. Give journal entries and show hoe debenture account will be shown in the balance sheet of the company? has been provided alongside types of Tata motors Ltd. invited application for the issue of 3000,10% debenture of Rs. 100/ each at a discount of 10% payable Rs. 30/- on application Rs. 30/- on allotment (after deducting discount) and the balance on first and duly called and paid up. Give journal entries and show hoe debenture account will be shown in the balance sheet of the company? theory, EduRev gives you an
ample number of questions to practice Tata motors Ltd. invited application for the issue of 3000,10% debenture of Rs. 100/ each at a discount of 10% payable Rs. 30/- on application Rs. 30/- on allotment (after deducting discount) and the balance on first and duly called and paid up. Give journal entries and show hoe debenture account will be shown in the balance sheet of the company? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup