{"id":121423,"date":"2022-05-17T16:20:57","date_gmt":"2022-05-17T10:50:57","guid":{"rendered":"https:\/\/www.mapsofindia.com\/my-india\/?p=121423"},"modified":"2022-05-17T16:20:57","modified_gmt":"2022-05-17T10:50:57","slug":"yogadatra-ltd-pharmaceutical-company-appointed-marketing-expert-mr-kartikay-as-the-ceo-of-the-company-with-a-target-to-penetrate-their-roots-in-the-rural-regions-mr-kartikay-discussed-the-ways","status":"publish","type":"post","link":"https:\/\/www.mapsofindia.com\/my-india\/education\/yogadatra-ltd-pharmaceutical-company-appointed-marketing-expert-mr-kartikay-as-the-ceo-of-the-company-with-a-target-to-penetrate-their-roots-in-the-rural-regions-mr-kartikay-discussed-the-ways","title":{"rendered":"Yogadatra Ltd. (pharmaceutical company) appointed marketing expert, Mr. Kartikay as the CEO of the company, with a target to penetrate their roots in the rural regions. Mr. kartikay discussed the ways and means to achieve target of the company with financial, production and marketing departmental heads and asked the finance manager to prepare the budget. After reviewing the suggestions given by all the departmental heads, the finance manager proposed requirement of an additional fund of \u20b952,50,000. Yogadatra Ltd. is a zero-debt company. To avail the benefits of financial leverage, the finance manager proposed to include debt in the capital structure. After deliberations, on April1,2020, the board of directors had decided to issue 6% Debentures of \u20b9100 each to the public at a premium of 5%, redeemable after 5 years at \u20b9110 per share. You are required to answer the following questions: (i) Calculate the number of debentures to be issued to raise additional funds. (ii) Pass Journal entry for the allotment of debentures. (iii)Pass Journal entry to write off loss on issue of debentures. (iv)Calculate the amount of annual fixed obligation associated with debentures. (v) Prepare Loss on Issue of Debentures Account."},"content":{"rendered":"

Yogadatra Ltd. (pharmaceutical company) appointed marketing expert,
\nMr. Kartikay as the CEO of the company, with a target to penetrate their
\nroots in the rural regions. Mr. kartikay discussed the ways and means to
\nachieve target of the company with financial, production and marketing
\ndepartmental heads and asked the finance manager to prepare the
\nbudget. After reviewing the suggestions given by all the departmental
\nheads, the finance manager proposed requirement of an additional fund
\nof \u20b952,50,000.
\nYogadatra Ltd. is a zero-debt company. To avail the benefits of financial
\nleverage, the finance manager proposed to include debt in the capital
\nstructure. After deliberations, on April1,2020, the board of directors had
\ndecided to issue 6% Debentures of \u20b9100 each to the public at a premium
\nof 5%, redeemable after 5 years at \u20b9110 per share.<\/h2>\n

You are required to answer the following questions:
\n(i) Calculate the number of debentures to be issued to raise additional
\nfunds.
\n(ii) Pass Journal entry for the allotment of debentures.
\n(iii)Pass Journal entry to write off loss on issue of debentures.
\n(iv)Calculate the amount of annual fixed obligation associated with
\ndebentures.
\n(v) Prepare Loss on Issue of Debentures Account.<\/h2>\n

Answer.<\/h3>\n

(i) Number of Debentures to be issued = 52,50,000\/105 = 50,000
\n(ii) In the Books of Yogadatra Ltd.<\/h3>\n

\"\"<\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

Yogadatra Ltd. (pharmaceutical company) appointed marketing expert, Mr. Kartikay as the CEO of the company, with a target to penetrate their roots in the rural regions. Mr. kartikay discussed the ways and means to achieve target of the company with financial, production and marketing departmental heads and asked the finance manager to prepare the budget. […]<\/p>\n","protected":false},"author":21830,"featured_media":121365,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":{"0":"post-121423","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-education"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/121423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/users\/21830"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/comments?post=121423"}],"version-history":[{"count":1,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/121423\/revisions"}],"predecessor-version":[{"id":121424,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/posts\/121423\/revisions\/121424"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media\/121365"}],"wp:attachment":[{"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/media?parent=121423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/categories?post=121423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mapsofindia.com\/my-india\/wp-json\/wp\/v2\/tags?post=121423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}