Page 175 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes (i) X Limited issues 10,000, 10% Debentures of 100 each at a discount of 3% to be
redeemed at par at the end of 5th year.
(ii) Y Limited issues 15,000; 10% Debentures of 100 each at a discount of 4% to be
redeemed at a premium of 4% at the end of 5th year.
(iii) Z Limited issues 20,000; 10% Debentures of 100 each at par to be redeemed at a
premium of 4% at the end of fifth year.
(iv) XA Limited issues 25,000; 10% Debentures of 100 each at a premium of 5% to be
redeemed at par at the end of 5th year.

5. Hari Mohan Limited issues 1000; 12% debentures of 500 each. Pass journal entries in the
following cases:
(i) Debentures are issued at par and redeemable at par.

(ii) Debentures are issued at par and redeemable at 5% premium.
(iii) Debentures are issued at 5% discount and redeemable at par.
(iv) Debentures are issued at 5% discount and redeemable at 10% discount.
(v) Debentures are issued at 5% discount and redeemable at 2.5% premium.

(vi) Debenture are issued at 5% premium and redeemable at par.
(vii) Debentures are issued at 5% premium and redeemable at 10% premium.
6. Show by means of journal entries how will you record the following issues. Also, show
how they will appear in their respective balance sheets:
(i) A Ltd. issued 10,000; 15% Debentures of 100 each at a discount of 10% redeemable
at the end of 10 year at par.

(ii) B Ltd. issued 10,000; 15% Debentures of 100 each at par redeemable at the end of 10
year at a premium of 10%.
(iii) C Ltd. issued 10,000; 15% Debentures of 100 each at a premium of 10% redeemable
at the end of 10 years at a premium of 10%.
(iv) D Ltd. issued 10,000; 15% Debentures of 500 each at a discount of 5% redeemable at
the end of 10 years at a premium of 5%.

Answers: Self Assessment

1. debentures 2. redeems
3. issue 4. accounting
5. lenders 6. true

7. false 8. true
9. true 10. Also Invested,
11. Personal, 12. P. & L. Account.
13. (b) 14. (b)
15. (a)

168 LOVELY PROFESSIONAL UNIVERSITY