Issue of Debentures — Accountancy STD 12 Commerce — Question

Jain Ltd purchased machinery costing ₹ 10,00,000 from Ayer Ltd. 50% of the payment was made by cheque and for the remaining 50, the company issued Equity Shares of ₹ 100 each at a premium of 25%.
Pass necessary Journal entries in the books of Jain Ltd. for the above transaction.

From the following informations, calculate Return on Investment (or Return on Capital Employed):

Particulars	₹
Share Capital. Reserves and Surplus. Net Fixed Assets. Non-current Trade Investments. Current Assets. 10% Long-term Borrowings. Current Liabilities. Long-term Provisions.	5,00,000 2,50,000 22,50,000 2,50,000 11,00,000 20,00,000 8,50,000 NIL

Net Profit before Tax: ₹ 6,00,000.

Z Ltd. has the following balances on 1st April 2013:

	₹
General Reserve	2,50,000
Capital Reserve	1,50,000
Statement of Profit & Loss	2,00,000

During the year ended 31st March 2014, it incurred a loss of 7,10,000. Show how these items will appear in the Balance Sheet and notes to accounts?

Identify the transactions as belonging to:

1. Operating Activities.
2. Investing Activities.
3. Financing Activities.
4. Cash and Cash Equivalents.

1. Cash Sale of Goods.
2. Cash Received against Revenue from Services rendered.
3. Cash Purchase of Goods.
4. Cash Paid against Services Taken.
5. Patents Purchased.
6. Marketable Securities.
7. Bank Overdraft.
8. Proceeds from Issue of Debentures.
9. Purchase of Shares.
10. Repayment of Long-term Loan.
11. Commission Received.
12. Redemption of Debentures.
13. Interest on Debentures.
14. Interest on Investments.
15. Income Tax Paid.
16. Income Tax Paid on Gain of Sale of Asset.
17. Cash Received from Debtors.
18. Cash Paid to Creditors.

X Ltd. has Current Ratio of 4.5 : 1 and a Quick Ratio of 3 : 1. If its inventory is ₹ 36,000, find out its total Current Assets and total Current Liabilities.

On 1st April, 2016, Nissan Ltd. was formed with an authorised capital of ₹ 60,00,000 divided into 6,00,000 equity shares of ₹ 10 each. The Company issued prospectus inviting applications for 4,50,000 shares. The issue price was payable as under:

	₹
On Application	3
On Allotment	4
On call	Balance

Issue was fully subscribed and the company allotted shares to all the applicants.
The company did not make the call during the year. All money due on allotment was duly received except on 2,000 shares.
Show the Share Capital in the Balance Sheet of the Company.

Under what main heads and sub-heads, will the following items appear in the balance sheet of a company as per Schedule III, Part I of the Companies Act, 2013
i. Mining rights
ii. Encashment of employees earned leave payable on retirement
iii. Vehicles

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.

Pass necessary journal entries relating to the issue of Debentures for the following:
Issued ₹ 28,000; 10% Debentures of ₹ 100 each at a premium of 15% redeemable at par.

Tuteja Constructions Ltd. had an outstanding balance of ₹ 1,26,00,000, 9% debentures of ₹ 200 each redeemable at a premium of 3%. According to the terms of redemption, the company redeemed 50% of the above debentures by converting them into shares of ₹ 10 each at a discount of 10%. Record the entries for redemption of Debentures in. the books of Tuteja Constructions Ltd.