(ii) For creditors of Rs. 45,000 against purchase of machinery Rs. 35,000 nominal (iii) To SBI bank against a loan of Rs. 10,000 as collateral security Rs. 15,000 nominal 28) Dipesh Ltd redeemed its 8,000, 11 % Debentures of Rs. 100 each in the following manner; 4,000 debentures were purchased @ Rs. 95. 3,000 debentures were purchased @ Rs. 93 1,000 debentures were purchased @ Rs. 97.50. The expenses on purchase of own debentures amounted to Rs. 200. The debentures were purchased for immediate cancellation. Pass journal entries. Chapter-8 Issue and redemption of deberntures QUEATION QUESTION MARKS NO 1 Write any two difference between a debenture holder and equity shareholder. 1 2 1 Why is premium on the issue of debentures considered a capital profit ? 3 Give the meaning of debenture. 1 4 1 What is meant by convertible debentures ? 5 1 What is the nature of interest on debentures ? 6 Raghav Limited purchased a running business from Krishna 3 Traders for a sum of Rs. 15,00,000 payable Rs. 3,00,000 by cheque and for the balance issued 9% Debentures of Rs. 100 each at par. The assets and liabilities consisted of the following: Plant and Machinery 4,00,000 Building 6,00,000 Stock 5,00,000 Debtors 3,00,000 Creditors 2,00,000 Record necessary journal entries in the books of Raghav Limited. 7 3 On January 1, 2006 Suzlon Limited issued 1,000 10% debentures of Rs. 500 each at par Debenture are redeemable after 7 years. However, the company gave an option to debenture holders to get their debentures converted into equity shares of Rs. 100 each at a premium of Rs. 25 per share anytime after the expiry of one year. Arvind the holder of 200 debentures, informed on Jan1,2006 that he wanted to exercise the option of conversion of debentures into equity shares.
(ii) For creditors of Rs. 45,000 against purchase of machinery Rs. 35,000 nominal (iii) To SBI bank against a loan of Rs. 10,000 as collateral security Rs. 15,000 nominal 28) Dipesh Ltd redeemed its 8,000, 11 % Debentures of Rs. 100 each in the following manner; 4,000 debentures were purchased @ Rs. 95. 3,000 debentures were purchased @ Rs. 93 1,000 debentures were purchased @ Rs. 97.50. The expenses on purchase of own debentures amounted to Rs. 200. The debentures were purchased for immediate cancellation. Pass journal entries. Chapter-8 Issue and redemption of deberntures QUEATION NO QUESTION MARKS 1 Write any two difference between a debenture holder and equity shareholder. 1 2 Why is premium on the issue of debentures considered a capital profit ? 1 3 Give the meaning of debenture. 1 4 What is meant by convertible debentures ? 1 5 What is the nature of interest on debentures ? 1 6 Raghav Limited purchased a running business from Krishna Traders for a sum of Rs. 15,00,000 payable Rs. 3,00,000 by cheque and for the balance issued 9% Debentures of Rs. 100 each at par. The assets and liabilities consisted of the following: Plant and Machinery 4,00,000 Building 6,00,000 Stock 5,00,000 Debtors 3,00,000 Creditors 2,00,000 Record necessary journal entries in the books of Raghav Limited. 3 7 On January 1, 2006 Suzlon Limited issued 1,000 10% debentures of Rs. 500 each at par Debenture are redeemable after 7 years. However, the company gave an option to debenture holders to get their debentures converted into equity shares of Rs. 100 each at a premium of Rs. 25 per share anytime after the expiry of one year. Arvind the holder of 200 debentures, informed on Jan1,2006 that he wanted to exercise the option of conversion of debentures into equity shares. 3
1911505113xii_acc_2013-14.docx