AMITY INTERNATIONAL SCHOOL, NOIDA HOLIDAY HOMEWORK (ACCOUNTANCY XII)

ASSIGNMENT 1 (ISSUE OF SHARES)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) (28) (29) (30) What is meant by a Company? What is meant by Share? What are the two types of shares which a company can issue? Differentiate between Equity Shares and Preference Shares on the basis of (a) Voting Right; (b) Right to Dividend; (c) Rate of Dividend (d) Convertibility. What is meant by perpetual succession of a company? Why would investor prefer to invest in shares of a company rather than in its debentures? What is meant by the Authorised Share Capital? What does paid-up Capital mean? What is Share Certificate? Differentiate between Reserve Capital and Capital Reserve on the basis of (a) Meaning; (b) Creation; (c) Optional/ Mandatory; (d) Special Resolution; (e) Use; and (e) Disclosure. What is Minimum Subscription? State briefly SEBI guidelines relating to it? Differentiate between Over-Subscription and Under-Subscription of shares on the basis of: (a) Shares Applied; (b) Acceptance; (c) Refund. What is meant by Issue of Shares for Consideration other than cash? What is meant by Private Placement of Shares? What is meant by Right Issue of Shares? What is meant by Sweat Equity Shares? State the purposes for which the securities premium can be utilized under Section 77 A and 78 of Companies Act, 1956. State the provisions of the Companies Act, 1956 for the Issue of Shares at Discount. State the maximum amount of discount can be offered at the time of reissue of shares. What is meant by the Public Subscription of Shares? What is meant by Buy Back of Shares? Which section of the Companies Act, 1956 is applicable on it? What is meant by Escrow Account? Give any three alternatives available to a company for the allotment of shares in case of oversubscription. When share application money becomes part of Share Capital? State the provisions mentioned in Table A relating to: (a) Interest on Calls-in- Arrear and Calls inAdvance; (b) Minimum time interval between two consecutive share calls; (c) Prospectus. What is meant by Surrender of Shares? Where would you transfer the balance left in the forfeited Shares Account after the reissue of Forfeited Shares? What is meant by Employees Stock Option Scheme? Under which account you will debit Discount on reissue of Shares? How can a company use cash received against Securities Premium? How will you show (a) Calls in Arrear; (b) Calls in Advance; (c) Discount on Issue of Shares; (d) Share Forfeited Account; (e) Securities Premium; (f) Capital Reserve; in the Balance Sheet of a company?

AMITY INTERNATIONAL SCHOOL, NOIDA HOLIDAY HOMEWORK (ACCOUNTANCY XII)

ASSIGNMENT 2 (ISSUE OF SHARES)

(1) Archie Ltd. issued a prospectus inviting application for 40,000 shares of Rs. 10 each payable as follows: Rs. 3 on application; Rs. 2 on allotment; Rs. 4 on First call and balance on final call. Applications were received for 40,000 shares. Allotment was made to all applicants. All the dues were duly received. Expense on issue of shares amounted to Rs. 12,000. Give necessary journal entries prepare ledger account (cash book) only and Balance Sheet of the company. Agam Ltd. issued 10,000 equity shares of Rs. 20 each at a premium of 20%. Public subscribed for all the shares and the whole amount is payable at application only. Record necessary journal entries. Alabhya Ltd. issued 20,000 equity shares of Rs. 50 each at maximum discount allowed by the Companies Act. Public subscribed for all the shares and the whole amount is payable at application only. Record necessary journal entries. Anand Ltd. has issued 10,000 Preference Shares of Rs. 20 each at 20% premium on which amount payable is as follows: Rs. 4 on application; Rs. 8 on allotment and balance in two equal calls. Issue was fully subscribed and money was duly received. Record necessary journal entries, prepare cash book and show the Balance Sheet. Aarushi Ltd. issued 10,000 equity shares of Rs. 30 each at a discount of Rs. 3 per share on which amount is payable is as follows: Rs. 2 on application; Rs. 3 on allotment and balance on two equal calls. Record necessary journal entries, prepare cash book and show the Balance Sheet. Pranali Ltd. invited application for 40,000 shares of Rs. 10 at a discount of 10% payable as follows: On Application Rs.3; on Allotment Rs. 3 and on first and final call the balance amount. The applications were received for 36,000 shares and all of these were accepted. All the money was duly received. Record necessary journal entries, prepare cash book and show the Balance Sheet. Yoshita Ltd. has purchased furniture worth Rs. 90,000 from Vipul Ltd. at Rs. 1,00,000 by paying Rs. 40,000 in cash and balance by issuing equity shares of Rs. 10 each at 10% discount for the balance amount. Record necessary journal entries, and show the balance sheet. Abeer Ltd. acquired the business of Samvartika Ltd. for the purchase consideration of Rs. 20,00,000 which is payable as follows: (a) Rs. 2,00,000 by cheque; (b) by accepting a bill for Rs. 6,00,000 and (c) balance through issue of shares of Rs. 50 each at a discount of 6%. Record necessary journal entries. Sushant Ltd issued 50,000 shares of Rs. 10 each. Payment was made as follows: On application Rs. 3 (1st February, 2012); On Allotment Rs. 5 (1st March, 2012) and Final Call Rs. 2 (1st June, 2012). Brinda was allotted 500 shares failed to pay the final call money on the due date. But she paid the unpaid calls money on 1st August, 2012 with the interest as per the provisions of Table A of the Companies Act, 1956. Record necessary journal entries. ( Ans. Interest on Calls -in -arrear Rs. 8.33.) Nadeem Ltd issued 5,000 shares of Rs. 10 each on which payable is as follows: On application Rs. 4 (1st January, 2012); On Allotment Rs. 4 (1st March, 2012) and Final Call Rs. 2 (1st April, 2012). Shiv, to whom 500 shares were allotted, paid the full amount on application and Shantanu, to whom 100 shares were allotted, paid the final call money on allotment. Interest was paid on 1st April, 2012 as per the provisions of Table A of the Companies Act, 1956. Record necessary journal entries. (Ans. Interest on Calls -in Advance: Shiv Rs. 5 and Shantanu - Rs. 1)

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AMITY INTERNATIONAL SCHOOL, NOIDA HOLIDAY HOMEWORK (ACCOUNTANCY XII) ASSIGNMENT 3 (ISSUE OF SHARES)
(1) Saubhagya Ltd. Issued 80,000 shares of Rs 10 each payable as follows: Rs. 3 on application, Rs. 2 on allotment, Rs. 3 on first call and balance on final call. All the shares were subscribed and allotted. Varun the holder of 400 shares failed to pay both the calls and his shares were forfeited. These shares were re-issued at: (a) Rs. 8 paid up for Rs. 7 per share; (b) Rs. 10 per share fully paid up; (c) Rs. 11 per share fully paid up; (d) Rs. 8 per share fully paid up; Record necessary journal entries in all the above cases. (Ans. Capital Reserve (a) - Rs. 1,600; (b) Rs. 2,000; (c) Rs. 2,000; (d) Rs. 1,200). Kavita Ltd. Invited application for 20,000 equity shares of Rs 10 each at par payable as follows: Rs. 2 on application, Rs. 2 on allotment, Rs. 4 on first call and balance on final call. All the shares were subscribed and allotted. Deepakshi the holder of 500 shares has not paid both the calls. These shares were forfeited and out these 300 shares were reissued at Rs. 8 per shares fully paid up. Journalise these transactions and also prepare Cash Book and Balance Sheet. (Ans. Capital Reserve Rs. 600; Balance Sheet Rs. 1,99,400). Mahima Ltd. invited applications for 10,000 equity shares of Rs. Each at Rs. 11 per share payable as follows: On application Rs. 2; On Allotment Rs. 4 (including premium); On First Call Rs. 3 and On Final Call Rs. 2. All the shares were subscribed and money due was duly received except allotment and first call money on 1,000 shares held by Sarvagya. These shares were forfeited and out of these 500 shares were reissued at: (a) Rs. 8 paid up for Rs. 7 per share; (b) Rs. 10 per share fully paid up; (c) Rs. 1 per share fully paid up; (d) Rs. 8 per share fully paid up. (Ans. Capital Reserve (a) Rs. 500; (b) Rs. 1,000; (c) Rs. 1,000 and (d) NIL). Alpha Ltd. Offered 1,00,000 shares of Rs. 10 to the public on the following terms: Rs. 3 to be paid on application; Rs. 2 to be paid on allotment; Rs. 2 to be paid two months after allotment; and Rs. 3 to be paid three months after the first call. The public applied for 90,000 shares which were allotted, the allotment took place on 1st May, 2012. All the money due on allotment was received by 15th May, 2012. Calls were duly made but a shareholder holding 1,500 shares failed to pay the calls. Record necessary journal entries, prepare Cash Book and also give the Balance Sheet of the company. (Ans. Cash Bok total Rs. 8,92,500; Balance Sheet Rs. 8,92,500). Soham Ltd. Was established with an authorized capital of Rs. 10,00,000 divided into shares of Rs. 10 each. 32,000 shares were issued and subscribed for by the public payable as Rs. 4 on application, 2 on allotment, Rs. 2 on first call and Rs. 2 on final call. The amounts received in respect of these shares were as follows: On 24,000 share full amount; On 5,000 shares Rs. 8 per share; On 5,000 shares Rs. 6 per share; On 1,000 shares Rs. 4 per share. The directors forfeited 3,000 shares on which less than Rs. 8 per share has been paid and these shares were reissued to Sarthak at Rs. 8 per share as fully paid. Give Journal entries. (Ans. Capital Reserve Rs. 10,000) Agam Ltd. Forfeited 100 shares of Rs. 10 each, issued at a discount of 10%. The company had called-up only Rs. 8 per share. Final call of Rs. 2 each has not been made on these shares. These shares were allotted to Sanchit, who did not pay the first call of Rs. 3. Out of these 60 shares were reissued at Rs. 7 per share, as Rs. 8 paid-up. Give the Journal entries in the books of the company, show the working clearly. (Ans. Capital Reserve Rs. 240) Anjali Ltd. Forfeited 150 shares of Rs. 20 each issued at a premium of Rs. 5 per share for the non-payment of the second and final call of Rs. 7 per share. 100 of these shares were reissued @ Rs. 21 per share fully paid. Journalise the above transactions regarding the forfeiture and reissue. (Ans. Capital Reserve Rs. 1,300). Shipra Ltd., forfeited 1,000 shares of Rs. 10 each issued at a discount of Re. 1 per share, for non-payment of the first call of Rs. 2 per share. The final call of Rs. 3 per share has not yet been made. Subsequently, 400 of these shares were reissued at Rs. 5 per share, Rs 7 paid up, and 600 shares reissued at Rs. 7 per share fully paid up. Journalise the transactions to record the forfeiture and reissue. (Ans. Capital Reserve Rs. 2,400).

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AMITY INTERNATIONAL SCHOOL, NOIDA HOLIDAY HOMEWORK (ACCOUNTANCY XII) ASSIGNMENT 4 (ISSUE OF SHARES)
(1) The directors of Shweta Ltd. On 3rd October, 201, forfeited 2,400 shares of Rs. 10 each for non-payment of second and final call of Rs. 2.50 per share. The shares were originally issued at par. of the forfeited shares were reissued as fully paid-up at a price that made it necessary to utilize the share forfeiture account to the extent of Rs. 3,600. Record the necessary journal entries in the books of Shweta Ltd. Assuming that forfeited shares were reissued on 24th October, 2012. (Ans. Capital Reserve Rs. 9,900; Share Forfeited account Rs. 4,500; Reissue price Rs. 8 per share) Shantam Ltd. issued 10,000 equity shares of Rs. 10 each at a premium of Rs. 2 each, payable as under: On 2nd and final call 20% of Face Value; On previous three stages Balance of Face Value + Premium on Allotment. Some shares were forfeited on which Rs. 1,500 were due on second and final call, due to non-payment of such amount. All the forfeited shares were reissued as fully paid at an amount, leaving a balance of Rs. 4,500 in shares forfeited account. Record necessary journal entries related to forfeiture and reissue of shares. Lydia Ltd. Invited applications for the issue of 30,000 equity shares of Rs. 10 each at a discount of Re 1 per share. Applications were received for 40,000 shares. 10% of the total applications were rejected and balance were allotted shares on pro-rata basis. The amount payable as follows: Rs. 2 on Application; Rs. 3 on Allotment and balance on the first and final call. Akhil who had applied for 3,000 shares failed to pay the allotment money and his shares were immediately forfeited. Abhishek who was allotted 2,000 shares, paid only Rs. 4,000 on allotment. On the failure to pay the first call, his shares were also forfeited. Record necessary journal entries. (Ans. Share forfeited A/C: Akhil Rs. 6,000, Abhishek Rs. 8,800). Viraj Ltd. Invited applications for issuing 70,000 equity shares of Rs. 10 each at a premium of Rs. 35 per share. The amount was payable as follows: On Application Rs. 15 (including premium Rs. 12); On Allotment Rs. 10 (including premium Rs. 8) and On first and final call balance. Applications were received for 65,000 shares and allotment was made to all the applicants. Avi the holder of 2,000 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards, the first and final call was made. Shishir the holder of 3,000 shares failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares, 4,000 shares were re-issued at Rs. 50 per share fully paid up. The reissued shares includes all the shares of Avi. Record necessary journal entries. Suraj Ltd. invited applications for 1,00,000 equity shares of Rs. 10 each. The shares were issued at a premium of Rs. 5 per share. The amount payable is as follows: On application and allotment Rs. 8 per share (including premium of Rs. 3) and balance including premium on the first and final call. Applications for 1,50,000 shares were received. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants on the following basis: (i) applicants for 80,000 shares were allotted 60,000 shares and (ii) Applicants for 60,000 shares were allotted 40,000 shares. Vaishnavi, who belongs to the first category and allotted 300 shares, failed to pay the first call money. Aashita who belonged to the category second was allotted 200 shares also failed to pay the first call money. Their shares were forfeited. The forfeited shares were reissued @ Rs. 12 per share fully paid up. Record necessary journal entries. (Ans. Capital Reserve Rs. 4,100). Vasudevan Ltd. Made an issue of 3,00,000 equity shares of Rs. 10 each at a premium of Rs. 4 per share, payable as follows: Rs. 4 on application (including Re. 1 premium); Rs. 3 on allotment (including Re 1 premium); Rs. 4 on first call (including Re. 1 premium); Rs. 3 on final call (including premium Re. 1).

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Applications were received for 4,00,000 shares, of which applications for 50,000 shares were rejected and their money was refunded. Rest of the applicants were issued shares on pro-rata basis and their excess money was adjusted towards allotment. Farhan, to whom 6,000 shares were allotted, failed to pay the allotment money and his shares were forfeited after allotment. Tanishque, who applied for 10,500 shares failed to pay the two calls and his shares were also forfeited. Sakshi, who was allotted 3,000 shares did not pay the final call. 12,000 forfeited shares were reissued as fully paid on receipt of Rs. 9 per share, the whole of Tanishques shares being included. Record necessary journal entries, prepare cash book and show the Balance Sheet of the company. (Ans. Capital Reserve-Rs. 44,000, Balance Sheet Rs. 41,80,000) The directors of Arzish Ltd. On 28th June, 2012, forfeited 700 equity shares due to non payment of final call money of Rs. 2 per share. These shares were originally issued at Rs. 10 per share. The company finally transferred Rs. 3,500 to Capital Reserve after reissuing all the forfeited shares as fully paid-up. You are required to ascertain the price at which forfeited shares were reissued and record the necessary journal entries. These shares were reissued on 12th August, 2012. (Ans. Rs.7 per share). The directors of Shefali Ltd. Forfeited 500 shares of Rs. 10 each issued at par for the non-payment of second and final call of Rs. 3 per share. On application the shareholder of these shares had applied for more shares but was allotted only 500 shares (pro-rata allotment). A portion of the excess money paid on application was to be adjusted towards the money due on second and final call. This portion of excess money was Rs. 300. All the forfeited shares were reissued to Shradha as fully paid for Rs. 9 per share. Record necessary journal entries. (Ans. Capital Reserve Rs. 3,300). Shobhit Ltd. Having authorised share capital of Rs. 50,000 divided into (i) 4,00,000 equity shares of Rs. 10 each and (ii) 10,000 12% preference shares of Rs. 100 each. Company purchased a building for Rs. 3,50,000 and discharged the purchase consideration fully by allotment of 3,000 12% preference shares. It also issued 2,00,000 equity shares at a premium of Rs. 4 per share payable as Rs. 2 on application; Rs. 8 on allotment and balance on first and final call. Public applied for 3,00,000 shares. Directors made pro-rata allotment to the applicants of 2,40,000 shares and rejected rest of the applications. Excess application money was retained for allotment. Rishabh who had 500 shares could not pay allotment and call money and his shares were forfeited. Tushar also not paid fist and final call on 250 shares but his shares were not forfeited. 300 of the forfeited shares were reissued @ Rs. 11 per share with 200 shares reissued @ Rs. 8.50 per share. Record necessary journal entries. (Ans. Capital Reserve Rs. 900). Medhavi Ltd. Forfeited 5,000 shares of Rs. 10 each, Rs. 7 called up due to the non-payment of allotment money of Rs. 5 per share including Rs. 3 premium out of the total premium of Rs. 5 per share. Rs. 1 premium yet to be collected. These shares were originally allotted to the shareholder in the ratio of 6:5. Out of the forfeited shares some shares were reissued in such a way that Rs. 6,200 will remain in the share forfeited amount and Rs. 10,800 will be transferred to capital reserve. Lubhavani Ltd. Invited applications for 1,00,000 equity shares of Rs. 10 each. The shares were issued at premium of Rs. 5 per share. The amount was payable as follows: On application and allotment Rs. 8 per share (including premium Rs. 3); On first and final call balance (including premium). Applications for 1,60,000 shares were received. Applications for 20,000 shares were rejected and pro-rata allotment was made to the remaining applicants on the following basis: Applicants for 80,000 shares were allotted 60,000 shares and Applicants for 60,000 shares were allotted 40,000 shares. Akshat, who belonged to the first category and was allotted 300 shares failed to pay the first and final call money, Saumya who belonged to the second category and was allotted 200 shares also failed to pay the first call and final call money. Their shares were forfeited. The forfeited shares were reissued at Rs. 12 per share fully paid up. The excess money received at application & allotment may be utilized towards the calls. (Ans. Capital Reserve Rs. 4,100)

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AMITY INTERNATIONAL SCHOOL, NOIDA HOLIDAY HOMEWORK (ACCOUNTANCY XII) ASSIGNMENT 5 (ISSUE AND REDEMPTION OF DEBENTURES) What is meant by Debentures and Bonds? Briefly explain various types of debentures on the basis of: (a) Security; (b) Redemption; (c) Records; (d) Priority; (e) Coupon Rate; (f) Convertibility. Define Charge. Distinguish between fixed charge and floating charge. What is meant by Issue of Debentures as Collateral Security? Explain with the help of an example. What is the nature of Interest on Debentures? What are the alternatives available to a company for the allotment of debentures when there is oversubscription of debentures? If the purchase consideration can be settled by issue of debentures at premium, how will you determine the number of debentures to be issued? In which account excess of purchase consideration over net assets is debited? In which account excess of net assets over purchase consideration is credited? Do the debenture holders have priority over shareholders in repayment during winding up of a company? Why? A debenture holder does not have a right to vote at the General Meeting. Why? Mrinalini Ltd. Wants to raise funds. Bhavnita, a director proposes to issue 10% Preference shares, while Masoom, another director of the company recommends to issue 10% debentures. Which proposal is better and why? What is meant by purchase consideration? Ayushe Ltd., has incurred a loss of Rs. 10,00,000 before payment of interest on debentures. The director of the company is of the opinion that interest on debenture is payable only when the company earns profit. Do you agree? When does loss on issue of debenture arise? Distinguish between First Debentures and Second Debentures. What is nature of Premium on Redemption of Debentures? Differentiate between Premium on Issue of Debentures and Premium on Redemption of Debenture? List any four types of companies which are exempted from the obligation of creating Debenture Redemption Reserve (DRR) by the SEBI? What is meant by DRR? What are the provisions of the Companies (Amendment) Act, 2000 regarding Debenture Redemption Reserve (DRR)? State, in brief, the SEBI guidelines regarding Debenture Redemption Reserve? State briefly various methods of redemption of debentures. State briefly various sources of redemption of debentures. Differentiate between redemption out of profits and redemption out of capital. Why are unsecured debentures are less risky than shares? Why would investor prefer to invest partly in shares and partly in debentures of a company? Name the account against which premium on redemption of debentures can be written off. Can the debenture holders demand the conversion of the unpaid interest (at the time of redemption) into shares?

AMITY INTERNATIONAL SCHOOL, NOIDA HOLIDAY HOMEWORK (ACCOUNTANCY XII) ASSIGNMENT 6 (ISSUE AND REDEMPTION OF DEBENTURES)
(1) Masoom Ltd. Issued 10,000, 8% Debentures of Rs. 100 each at Rs. 110 payable Rs. 25 on application, Rs. 35 on allotment(including premium) and balance on first and final call. Applications were received for 15,000 debentures. All allotment was made proportionately, over-subscription being applied to the amount due on allotment. All sum due were received by the company on due dates. Journalise the above transactions and show how the amounts will appear in the balance sheet? Apoorva Ltd. Issued 10,000, 8% Debentures of Rs. 100 each at a premium of 10% redeemable at a premium of 2% after 5 years. Record the necessary journal entries for the issue of debentures. Garima Ltd. issues 5000, 15% debentures of Rs. 100 each at 10% discount (on which amount payable is Rs. 30 on application; Rs. 40 on allotment and balance in final call) and redeemable at 20% premium. Applications were received for 4,000 debentures. The company allotted debentures to all. Call was made. All money was received except on 100 debentures. Record necessary journal entries for the issue of debentures. Sargun Ltd. purchased Plant for Rs. 2,00,000 from Prashant Ltd., the amount is payable as Rs. 40,000 through cheque and balance by allotment of 6% Debentures of Rs. 1,000 each at a premium of 25%. Journalise the above transactions. (Ans. No. of Debentures 128). Dakshta Ltd. purchased machinery of Rs. 2,20,000 from Poorvi Ltd. 40% of the amount was paid to Poorvi Ltd. by accepting a bill of exchange and for the balance amount Dakshta Ltd. issued 9% Debentures of Rs. 100 each at a premium of 30% in favour of Poorvi Ltd. Record necessary journal entries. Udit Ltd. purchased assets of the book value Rs. 4,00,000 and took over the liabilities of Rs. 50,000 from Mohan Bros. It was agree that purchase consideration, settled at Rs. 3,80,000 to be paid by issuing the debentures of Rs. 100 each. Record necessary journal entries, if debentures are issued; (a) at par; (b) at a premium of 10%. (Ans. Goodwill Rs. 30,000; (a) 3,800 Debentures; (b) 3,454 Debentures, paid Rs. 60 through cash/bank). Ankit Ltd. issues the following debentures(i) 10,000, 12% Debentures of Rs 100 each at par but redeemable at a premium of 5 % after five years. (ii) 10,000, 12% Debentures of Rs 100 each at a discount of 5%, but redeemable at a premium of 5% after five years. (iii) 5,000, 12% Debentures of Rs 100 each at a premium of 10% but redeemable at par after five years. (iv) 1,000, 14% Debentures of Rs 100 each issued to a supplier of Machinery costing Rs 95,000. The Debentures are repayable after five years, and (v) 300, 13% Debentures of Rs 100 each as a collateral security to a Bank who has advanced a loan of Rs 25,000 to the company for a period of 5 years. Record the necessary journal entries to record the: (a) Issue of Debentures, and (b) Repayment of Debentures after the given period. Prarthana Ltd. has 80,000; 8% Debentures of Rs. 100 each due for redemption on 31 st March, 2012. Assume that Debenture Redemption Reserve has a balance of Rs. 38,00,000 on that date. Record the necessary journal entries at the time of redemption of Debentures. (Ans. DRR Rs. 2,00,000). Pranay Ltd. issued 20,00,000, 9% Debentures of Rs. 100 each on July 31, 2001 which will be redeemed at a premium of 6% on October 31, 2008. It was decided to create DRR in for equal annual instalments starting from July 31st, 2005. Record necessary journal entries for the issue and redemption of debentures. Aneesh Ltd. had a balance of Rs. 40,00,000 in its Profit and Loss Account. Instead of declaring a dividend it decided to redeem its Rs. 35,00,000; 8% Debentures at a premium of 10%. Record necessary journal entries in the books of the company for the redemption of debentures.

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Abhilasha Ltd., an infrastructure company had a balance of Rs. 40,00,000 in its Profit and Loss Account. Instead of declaring a dividend it decided to redeem its Rs. 35,00,000; 8% Debentures at a premium of 10%. Record necessary journal entries in the books of the company for the redemption of debentures. Pranjal Ltd. has issued 20,000; 9% Debentures of Rs. 100 each of which half the amount is due for redemption on 31st March, 2008. The company has in its Debenture Reserve Account a balance of Rs. 4,40,000. Record necessary journal entries at the time of redemption of debentures. Nikita Ltd. on 1st April, 2006 acquired assets of the value of Rs. 6,00,000 and liabilities worth Rs. 70,000 for Mitali Ltd., at an agreed value of Rs. 5,50,000. Nikita Ltd. issued 12% Debentures of Rs. 100 each at a premium of 10% in full satisfaction of purchase consideration. The Debentures were redeemable 3 years later at a premium of 5%. Record necessary journal entries to record the above including redemption of debentures. On 1st January, 2007 Karthika Ltd. issued 30,000; 8% Debentures of Rs. 500 each at par which were repayable at a premium of 15% on 31st December, 2011. On the date of maturity, the company decided to redeem the above mentioned 8% Debentures as per the terms of issue, out profits. The Profit & Loss Account shows a credit balance of Rs 2,00,00,000 on this date. The offer was accepted by the 15,000 debenture holders and these debentures were redeemed. Record necessary journal entries in the books of the company only for the redemption of debentures, if the company follows Section 117 C of the Companies Act 1956. On 1st April, 2010 Kartikeya Ltd. issued 50,000; 10% Debentures of Rs 10 each at 96% and redeemable at 8% premium after 4 years and offered the holders option to convert their holdings into equity shares of Rs. 200 each after 31st March, 2012. On 1st April, 2012, 30% holders exercised their option. Record necessary journal entries both at the time of issue and at the time of conversion under the following situations, if equity shares of Rs. 100 each are: (a) issued at par; (b) issued at 25% premium; (c) issued at 4% discount. Journalise the following: (a) 4,000; 10% Debentures of Rs. 100 each issued at a discount of 5% and redeemable at par after 5 years were converted into 10% Debentures of Rs. 200 each issued at par before maturity; (b)3,000; 12% Debentures of Rs. 200 each issued at a discount of 10% and redeemable at par after 5 years were converted into 12% Debentures of Rs. 100 each issued at a premium of 25% before maturity; (c)6,000; 8% Debentures of Rs. 500 each issued at a discount of 10% discount and redeemable at premium of 20% after five years were converted into 12% Debentures f Rs. 100 each issued at a discount of 10% before maturity. Anshuman Ltd. has 4,000; 10% Debentures of Rs. 500 each outstanding. These debentures were issued two years earlier at a discount of 5%. The company has decided to convert these debentures into shares of Rs. 20 each issued as follows: (a) On conversion the shares are issued at par; (b) On conversion the shares are issued at Rs. 12.50; and (c) On conversion the shares are issued at a discount of 5%. Give the journal entries in all the above cases. On 31st December, 2009, Shaharyar Ltd. had outstanding Rs. 10,00,000 in 10% debentures of Rs. 500 each redeemable at a premium of 10% on 31st March, 2010. On 1st January, 2010, it was decided to give the holders of these debentures the following options: (i) To convert their holdings into 9% preference shares of Rs. 100 each at par; (ii) To accept equity shares of Rs. 100 each at Rs. 94.50 per share; or (iii) To accept cheque. On 31st March, 2010, holders of 2,000 debentures had expressed their option of 9% preference share, holders of 1,800 debentures accepted equity shares and the remaining debentures were paid through cheque. Record necessary journal entries in the books of the company. Tanya Ltd. redeemed 2,000; 10% Debentures of Rs. 500 each by converting them into equity shares of Rs. 50 each at a premium of 20% per share. The company also utilized Rs. 50,000 out of profits to redeem 100 debentures. Record necessary journal entries.