What is meant by a Debenture?

What is the nature of interest on debentures? 

Why would an investor prefer to invest in debentures of a company rather than in its shares? 

What is meant by issue of debentures as a collateral security? 

What is meant by irredeemable debentures? 

Pass necessary journal entries for the issue of debentures in the following cases:
(i) Rs.50,000, 8% debentures of Rs.100 each issued at par redeemable at 10% Premium.
(ii) Rs.60,000, 8% debentures of Rs.100 each issued at a Premium of 10%, redeemable at par.

Vijay Laxmi Ltd. invited applications for issuing 10,000, 12% Debentures of Rs.100 each at a premium of Rs 70 per Debenture. The full amount was payable on application.
Applications were received for 13,500 Debentures. Applications for 3,500 Debentures were rejected and application money was refunded. Debentures were allotted to the remaining applications.
Pass necessary Journal Entries in the books of Vijay Laxmi Ltd. for the above transactions.

Pass necessary journal entries for the following transactions :
(i) The company had a balance of Rs. 6,00,000, 8% Debentures. Out of these, 25% debentures were redeemed by draw of lots at a premium of 25%.
(ii) Paid half yearly interest on Rs. 1,80,000, 12% Debentures.

Why would an investor prefer to invest partly in shares and partly in the debentures of a company? 

State the minimum amount of profit required to be transferred to debenture redemption reserve.

ABC Ltd issued Rs 1,00,000, 6%debentures of Rs10 each at a premium of Rs 2 per debenture on 1st April, 2014. The issue was fully subscribed and interest will be paid at the end of each financial year. Pass necessary journal entries for the year 2014-15.

On 31st March, 2015, DEF Ltd had Rs 8,00,000, 9% debentures due for redemption. The company had a balance of Rs 1,40,000 in its debenture redemption reserve. Pass necessary journal entries for redemption of debentures.

LMN 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 journal entries.

Arihant Ltd has 20,000, 9% debentures of Rs 100 each outstanding in the books of accounts as on 31st March, 2015, to be redeemed on 31st March, 2020. Show how will you disclose debentures in the balance sheet.  

ABC Ltd invited applications for 8,000 debentures of Rs 100 each issued at a premium of 20%. Applications were received for 12,000 debentures and it was decided to deal with the same as follows
(i) To refuse allotment to applicants for 2,400 debentures.
(ii) To give full allotment to applicants for 800 debentures.
(iii) To allot the remaining debentures on pro-rata basis among other applicants.
(iv) To utilise excess application money in part payment of allotment money.

ABC Ltd issued 1,00,000, 9% debentures of Rs 50 each at a premium of 10% on 30th June, 2013 redeemable on 31st March, 2015. The issue was fully subscribed. The company decided to create DRR on 31st March, 2014 and also decided to invest in 10% government securities to meet the legal requirement.
Pass journal entries for issue and redemption of debentures.

Nand Ram Ltd issued 1,00,000, 8% debentures of  Rs.10 each at  Rs.12 on 1st April, 2014. The issue was fully subscribed. In terms of the issue of debentures, interest was payable at the end of the financial year. Pass the journal entries for the above transactions.