Complete the following journal entries left blank in the books of VK Ltd: VK Ltd. Journal
Date
Particulars
L.F Debit
Amount
Rs. Credit
Amount
Rs.
2018
February 01
____Dr
_
(Purchased own $500, 9$ % debentures
of Rs. $100$ each at Rs. $97$ each for
immediate cancellation) _

_
February 01
_
_ Dr

(Cancelled own debentures)
____________
_Dr
_
(_____)

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Solution

VK Ltd.
Journal
Date
Particulars
L.F Debit
Amount
Rs. Credit
Amount
Rs.
2018
February 01
9% debenture account Dr
To bank account
(Purchased own $500, 9$ % debentures
of Rs. $100$ each at Rs. $97$ each for
immediate cancellation) 48,500

48,500
February 01
March 31
Debenture account Dr
To profit on cancellation
To 9% debenture account
(Cancelled own debentures)
________________________________
Profit on cancellation Dr
To capital reserve account
(Being profit transefered) 50,000
1500
1,500
48,500
1500

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Similar questions

A Ltd purchased its own debentures of the face value of Rs 2,00,000 from the open market for immediate cancellation at Rs 92. Pass the journal entries.

Exercise

Amar Ltd. purchased assets of the book value of Rs 99,000 from Abhi Ltd. It was agreed that purchase consideration to be paid by issuing 11% Debentures of Rs 100 each Assume debentures have been issued.

1. At par

2. At Discount of 10% and

3. At Premium of 10%

Record necessary journal entries

Exercise

Amar Ltd. issued 10,000 12% Debentures of Rs 100 each payable Rs 30 on application and remaining amount on allotment. The public applied for Rs 9,000 debentures which were fully allotted and on the relevant allotment money duly received. Give journal entries in the books of Amar Ltd.

Q. Pass necessary journal entries in the following cases :
(i)

Z

Ltd redeemed

1500

12 %

debentures of Rs

100

each issued at a discount of

6 %

by converting them into equity shares of Rs

100

each issued at a premium of Rs

25

per share.
(ii)

X

Ltd. converted

1, 000, 12 %

debentures of Rs

100

each issued at a discount of Rs

10

per debenture into equity shares of Rs

100

each Rs

90

paid up.

M Ltd took over assets of Rs.9,00,00,000 and liabilities of Rs.70,00,000 of S Ltd and issued 8% Debentures of Rs.100 each. Record necessary entries in the books of M Ltd.

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Date	Particulars	L.F	Debit Amount Rs.	Credit Amount Rs.
2018 February 01	________Dr _______ (Purchased own $500, 9$ % debentures of Rs. $100$ each at Rs. $97$ each for immediate cancellation)		_____	_____
February 01 _______	_________________ Dr __________________ __________________ (Cancelled own debentures) ________________________________ _________________Dr _______________ (_________________)		______ ______	______ ______ ______

Date	Particulars	L.F	Debit Amount Rs.	Credit Amount Rs.
2018 February 01	9% debenture account Dr To bank account (Purchased own $500, 9$ % debentures of Rs. $100$ each at Rs. $97$ each for immediate cancellation)		48,500	48,500
February 01 March 31	Debenture account Dr To profit on cancellation To 9% debenture account (Cancelled own debentures) ________________________________ Profit on cancellation Dr To capital reserve account (Being profit transefered)		50,000 1500	1,500 48,500 1500