Page 157 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes 8. A company purchased a building for 315000 and issued 10% debentures of 100 each at
a premium of 5%. Calculate (i) the number of debentures issued to the vendors (ii) make
journal entry for the issue.
9. Rama Company Limited issued 2000; 12% Debentures of 100 each payable as follows:

20% on application, 30% on allotment, 30% on first call and balance on final call.
Applications for all debentures were received and the company received all moneys
except in the case of one debenture-holder of 50 debentures who failed to pay his first and
final call money.

Make the necessary journal entries and draw cash book.
10. Subhneet Ltd. issued 50,000; 15% debentures of 100 each for public subscription at a
discount of 10%. Application money was 25 and the balance was payable as follows:
On allotment 30
On first call 25

On final call 20
Applications were received for 48,000 debentures and the amount were received when
due, except in the following cases:
(i) Mr. Sohan who holds 200 debentures did not pay first and final call.

(ii) Mr. Rohan who holds 400 debentures did not pay the final call.
Pass journal entries to record the transaction and cash book.
11. Lohit Limited issued 4,00,000; 10% Debentures of 100 each at 25% premium, payable
15% on application, 50% on allotment (including premium), 25% on first call and balance
on final call, after one month of the first call. The public applied for 4,800 debentures.
Applicants for 2,800 were accepted in full; applicants for 1,500 debentures were allotted.
1,200 debentures and applications were rejected. All moneys were duly received. Pass
journal entries and balance sheet of the company.

Answers: Self Assessment

1. Interest, 2. Secured Loans,
3. Members, 4. (b)

5. debentures 6. Discount
7. Premium 8. for considerations other than cash
9. Articles of Association 10. Arrears

11. Collateral security 12. Debenture suspense A/c
13. Assets side 14. When lender demands additional security

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