Accounting for Companies-Accounting for Debentures (CBSE Class-12 Accountancy): Questions 6 - 8 of 8

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Question number: 6

» Accounting for Companies » Accounting for Debentures » Debentures

Short Answer Question▾

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Journalise the following transactions in the books of sum ltd.

  1. 100, 12 % debentures of Rs. 100 each issued at a discount of 10 % were converted into 10 % preference shares of Rs. 100 each issued at a premium of 25%. The debentures were converted at the option of the debenture holders before the date of redemption.
  2. 100, 10 % debentures of Rs. 500 each were converted into debentures of Rs. 100 each. The new debentures were issued at a discount of 20%.

Question number: 7

» Accounting for Companies » Accounting for Debentures » Debentures

Short Answer Question▾

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On 1 Jan. 2001, a company issued 1000, 12 % debentures of Rs. 500 each at Rs. 450 each. Debenture holders were given an option to get their debentures converted into equity shares of Rs. 10 each at a premium of Rs. 50 per shares on 31sdt Dec, 2002, One year’s interest had accrued on these debentures which was not paid. A holder of 100 debentures informed that he wanted to exercise the option per conversion of debentures into equity shares. The company, therefore accepted his request and redeemed these 100 debentures by issuing him equity shares. The interest, however, on these 100 debentures was paid to the debenture holders. Pass necessary journal entries.

Question number: 8

» Accounting for Companies » Accounting for Debentures » Debentures

One Liner Question▾

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Name the head under which discount on issue of debentures appears in the Balance Sheet of “C” Company.

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