Issue of Debentures — Accountancy STD 12 Commerce — Question

A Company's inventory is ₹ 2,00,000. Total liquid assets are ₹ 8,00,000 and quick ratio is 2 : 1. Calculate the current ratio.

X Ltd forfeited 1,000 Equity shares of ₹ 10 each issued at a premium of ₹ 3 per share for the non-payment of final call of ₹ 6 (including premium) per share. The forfeited shares were re-issued as fully paid up for ₹ 7 per share.
Pass necessary journal entries in the books of the company.

Calculate Cost of Goods Sold from the following information:

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.

Calculate Operating Profit Ratio from the following:

	₹
Revenue from Operations (Net Sales).	5,00,000
Cost of Revenue from Operations (Cost of Goods Sold).	2,00,000
Wages.	1,00,000
Office and Administrative Expenses.	50,000
Interest on Borrowings.	5,000

Under what heads and sub-heads the following items will appear in the Balance Sheet of a company as per revised Schedule VI, Part - I of Companies Act 1956.

1. Premium on redemption of Debentures.
2. Loose tools.
3. Alances with banks.

Following is the extract from the Balance Sheet of Zee Ltd.:

Particulars	31st March, 2018 ₹	31st March, 2017 ₹
Equity Share Capital 10% Preference Share Capital Surplus, i.e., Balance in Statement of Profit and Loss Unpaid Dividend	8,00,000 6,00,000 7,20,000 20,000	8,00,000 6,00,000 4,00,000 ……

Additional Information:

1. Proposed equity dividends for the year 2016-17 and 2017-18 are ₹ 1,60,000 and 2,00,000 respectively.
2. An Interim Dividend of ₹ 40,000 on Equity Shares was paid.

Show Net Profit before Tax and Extraordinary Items.

Pass the necessary Journal entries for the issue of 7% Debentures in the following cases:

1. 200 Debentures of ₹ 150 each issued at 10% premium redeemable at, 200 each.
2. 200 Debentures of ₹ 200 each issued at a discount of 10% redeemable at par.

From the following information, prepare Note to Accounts on Finance Costs:
Interest paid to Bank ₹ 75,000; Interest on Debentures ₹ 58,000; Loss on issue of Debentures written off ₹ 27,500; and Commitment Charges ₹ 15,000.

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.