Question : Aman  Ltd. was promoted by Aman and Bina with an authorised capital of  Rs. 10,00,000 divided into 1,00,000 shares of  Rs. 10 each.
The company decided to issue 1,000, 6% Debentures of  Rs. 100 each to Amrit and Bhaskar each for their services in incorporating the company.

Question:- Choose the correct Journal entry at the time of issue of debentures

 

Option 1: Debited Goodwill account by Rs 2,00,000 , credited 6% Debentures Rs 2,00,000
 

Option 2: Debited incorporation expenses Rs 1,00,000, Credited debentures account Rs 1,00,000

Option 3: Debited incorporation expenses Rs 2, 00,000 credited Debentures account Rs 2,00,000

Option 4: None of the above 

Question : Aman  Ltd. was promoted by Aman and Bina with an authorised capital of  Rs. 10,00,000 divided into 1,00,000 shares of  Rs. 10 each.
The company decided to issue 1,000, 6% Debentures of  Rs. 100 each to Amrit and Bhaskar each for their services in incorporating the company.

Question:- Choose the correct Journal entry at the time of issue of debentures

Option 1: Debited Goodwill account by Rs 2,00,000 , credited 6% Debentures Rs 2,00,000
 

Option 2: Debited incorporation expenses Rs 1,00,000, Credited debentures account Rs 1,00,000

Option 3: Debited incorporation expenses Rs 2, 00,000 credited Debentures account Rs 2,00,000

Option 4: None of the above 

Question : KTR Ltd., issued 365, 9% Debentures of Rs. 1,000 each on 4th March, 2016 at 6% discount, redeemable at 5% premium. Loss on issue of Debentures debited/credited with _____________.

Option 1: Loss on issue of debentures account debited with Rs.36,500

Option 2: Loss on issue of debentures credited with Rs.41,150
 

Option 3: Loss on issue of Debentures debited with Rs. 41,150
 

Option 4: Loss on issue of debentures debited with Rs. 40,150
 

Question : KTR Ltd., issued 365, 9% Debentures of Rs. 1,000 each on 4th March, 2016 at 6% discount, redeemable at 5% premium. Loss on issue of Debentures debited/credited with _____________.

Option 1: Loss on issue of debentures account debited with Rs.36,500

Option 2: Loss on issue of debentures credited with Rs.41,150
 

Option 3: Loss on issue of Debentures debited with Rs. 41,150
 

Option 4: Loss on issue of debentures debited with Rs. 40,150
 

Question :

Citizen Ltd. issued 10,000, 6% Debentures of  Rs. 100 each at a discount of 10% redeemable at 10% premium. It has Securities Premium Reserve of  Rs. 1,75,000. Loss on Issue of Debentures  Rs. 2,00,000 will be written off by passing the following entry

Option 1: Debited securities premium with Rs 1,75,000 and credited loss on issue of debenture account Rs 1,75,000

Option 2: Debited securities premium reserve account with Rs 1,75,000 and debited surplus in profit and loss account Rs 25,000 and credited loss on issue of debenture account Rs 2,00,000

Option 3: Debited surplus in statement of profit and loss account Rs 2,00,000 and credited loss on issue of debentures account 

Option 4: None of these 

Question :

Intel Ltd. issued 10,000, 7% Debentures of  Rs. 100 each at a discount of 10%. It has Securities Premium Reserve of Rs.1,50,000.Discount on Issue of Debentures, i.e.,  Rs. 1,00,000 will be written off by passing the following entry

Option 1: Securities premium account debited by Rs 1,00,000 and credited discount on issue of debentures account 

Option 2: Debited profit and loss account  and credited discount on issue of debenture account by Rs 1,00,000

Option 3: Debited profit and loss adjustment account and credited discount on issue of debenture account 

Option 4: None  of theses