Issue of Debentures — Accountancy STD 12 Commerce — Question

Journalise the following:
Y Ltd. forfeited 400 shares of ₹ 100 each, issued at a premium of ₹ 5 per share (to be paid at the time of allotment) for non-payment of a first call of ₹ 20 per share. The second and final call of ₹ 20 has not yet been called. Out of these, 100 shares were re-issued on fully paid-up for ₹ 110 per share.

Deepak Ltd. purchased furniture for ₹ 2,20,000 from M/s Furniture Mart. 50% of the amount was paid to Furniture Mart by accepting a bill of exchange and for the balance the company issued 9% debentures of ₹ 100 each at a premium of 10% in favour of Furniture Mart.
Pass necessary journal entries in the books of Deepak Ltd. for the above transactions.

To provide employment to the youth and to develop Baramula district of Jammu and Kashmir, Jyoti Power Ltd. decided to setup a power plant. For raising funds the company decided to issue 8,50,000 equity shares of ₹ 10 each at a premium of ₹ 3 per share. The whole amount was payable on application. Applications for 20,00,000 shares were received. Applications for 3,00,000 shares were rejected and shares were alloted to the remaining applicants on pro-rate basis.

Pass necessary journal entries for the above transactions in the books of the company and identify any two values which the company wants to propagate.

Calculate operating ratio from the following:

Narain Laxmi Ltd. invited applications for issuing 7,500; 12% Debentures of ₹ 100 each at a premium of ₹ 35 per debenture. The full amount was payable on application. Applications were received for 10,000 Debentures. Allotment was made to all the applications on pro rata.
Pass necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd.

Raj Ltd. purchases furniture costing ₹ 2,20,000. It was agreed that the purchase consideration be paid by issue of 15% debentures of ₹ 100 each. Assume debenture have been issued: (i) at par (ii) at a premium of 10%.
Give necessary journal entries.

For each of the following transactions, calculate the resulting Cash Flow and state the nature of Cash Flow, i.e. whether it is Operating, Investing or Financing:

1. Acqured machinery for ₹ 2,50,000 paying 20% by cheque and executing a bond for the balance payable.
2. Paid ₹ 2,50,000 to acqire shares in Informa Tech Ltd.and received a dividend of ₹ 50,000 after acquisition.
3. Sold machinery of original cost of ₹ 2,00,000 with an accumulated depreciation of ₹ 1,60,000 for ₹ 60,000.

Total Assets ₹ 12,50,000; Total Debts ₹ 10,00,000; Current Liabilities ₹ 5,00,000. Calculate Debt to Equity Ratio.
Hints:

1. Long-term Debts = Total Debts - Current Liabilities.
2. Shareholders' Funds = Total Assets - Total Debts.

From the following information, calculate Liquid Ratio:

Particular	₹	Particular	₹
Current Assets.	2,00,000	Trade Receivable.	1,10,000
Inventories.	50,000	Current Liabilities.	70,000
Prepaid Expenses	10,000

To provide employment to the youth and to develop a backward area of Jharkhand which is near one of the coal mines, Thermal Power Energies Ltd. decided to set-up a Thermal Power Plant of 500 mega watt capacity. The company decided to issue 10,00,000 equity shares of ₹ 10 each at a premium of 70% to finance the project. Applications for 17,00,000 shares were received. Applications for 5,00,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The whole of share money was payable on application.Pass necessary journal entries for the above transactions in the books of the company and identify any two values which the company wants to convey to the society.