Kamal Ltd. Issued 24,000, 14% debentures of Rs. 100 each at a discount of 5% on January 1, 2010. Interest on these debentures is payable annually on 31st December each year. The debentures are redeemable at part in three equal installments at the end of third, fourth and fifth year. Prepare 14% debenture account and debenture interest account in the books of the company.
Ajit Ltd. Decided to redeem Rs. 2,12,500 12% debentures. It purchased 1,70,000 debentures in the open market at Rs. 98.50 each, the expenses being Rs. 100, and redeemed the balance of Rs. 42,500 debentures by draw of lots. Journalise.
Mani plastics limited redeemed 6,000, 15% debentures of Rs. 100 each by converting them into equity shares of Rs. 10 each at a premium of Rs. 2.50 per share. The company also redeemed 3,000 debentures by utilizing Rs. 3,00,000 out of profit. Give the necessary journal entries.
Varsha Ltd. Issued 1500, 15% debentures of Rs. 100 each on January 2014 at discount of 10% redeemable at premium of 10% out of profits. Give the journal entries at the time of issue and redemption of debentures if debentures are to be redeemed in lump sum at the end of 4th year. The directors decided to transfer the minimum amount to debenture Redemption Reserve on 31st December, 2014.
Suchita Ltd. Purchased machinery worth Rs. 8,41,500 from suppliers Ltd. The payment was made by issue of 12% debentures of 100 each. Pass the necessary journal entries for the purchase of machinery and issue of debentures when:-
