Urgent please

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xyz ltd. Co. issue 2%Non - Convertible debentures of Rs. 350 Crore of f.v. Rs. 1000000 on dt. 21.05.2009 and it will mature on 31.03.2011 Please calculate Premium amount on Maturity on dt. 31.03.11 and also let me know how to pass journal entry from issue to of NCD to Maturity.



Replies (14)

hey..u dnt hav mentioned any premium on maturity ..so journal entry on maturity would be:

Debenture A/c Dr  Rs. 10,00,000

       To bank  Rs. 10,00,000

pREMIUM IS 8.40 % on maturity..

Premium would be calculated on FV i.e. 10 lacs, therefore, 8.4% of Rs. 10lacs comes to Rs.84000.

entry would be:

1)Premium on maturity a/c Dr. --- Rs.84000/-(in B/s - Under Miscellaneous Exp)

   To Premium payable a/c -----Rs.84000(in b/s- shown under Provision)

Premium amount would be eaually spread over the maturity period(say 6 years) and every year that proportion(Rs.12000=84000/6) is transferred to P/L account.

But friend above query is from tata motors annual report . And tata motors showing Debenture amount Rs. 350 Crore and redemption premium amount 96.55 crore ( 8.40%) and it will redeem on 31/03/2013.
I also calculate and my figure was same as you but I did not get what mentioned in tata motors annual report.

Hey there is possibility that the debenture redemption premium cud be of other  debentures

sorry sir its clearly return for which amount company redemption debenture premium provided in books ...

Boss i think 8.4% should be interest rate..How cn company show 96.5 cr premium when the total premium is 84000/-only.

Cn u jst enclose the report here ??

please see attachment on page no. 68.

8.40 % is yield to maturity  

No file is attached??

 

sorry sir its not attaching ...

can you see from tata motors official website annaul report of 2011?

I have download the report frm thri website..i dnt find any 8.4% premium thing there???

pls see page no. 68 of 155.

I am nt getting this..bt will let u kno by tomm

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