Standard Machine Corporation

1. On 1st Jan’ 1988 Megha corporation issued eight percent 50, 00,000 bonds of Rs 100 each at Rs 103. Issue cost was 0.5% of the amount raised. On 1st Jan 2008, Five years before its maturity the firm wanted to call the bonds at Rs 108. The corporation spent Rs 80,000 on reacquisition of bonds. What accounting entries would be passed in the books of Megha Corporation?

2. On 1st January 2009 Shweta corporation purchased 10,00,000 of its fully paid shares at Rs 22 per share. On 20th January 2009 the company sold 5,00,000 of the treasury stock at Rs 25 and on 8th February 09 the rest of treasury stock issued to employees under stock option scheme at an exercise price of Rs 15 each. Show the journal entries to record the transactions.

3. In the year 2004 Shweta corporation issued 100,00,000 shares at Rs 14 each that includes a premium of Rs 4. On 1st January 2009 the corporation purchased 10,00,000 of its fully paid shares at Rs 22 per share. On 20th January 2009 the management of company decided to retire the treasury stock. Show the journal entries to record the transactions.

4. In the year 2004 Shweta corporation issued 100,00,000 shares at Rs 14 each that includes a premium of Rs 4. On 1st January 2009 the corporation purchased 10,00,000 of its fully paid shares at Rs 12 per share. On 20th January 2009 the management of company decided to retire the treasury stock. Show the journal entries to record the transactions.

5. Sirisha Inc acquired a machine on lease for four years in 2004 with a rental of Rs 40,000 p.a. In 2009 the lease was renewed for 6 more years. The life of the asset is 10 years. The Company charges depreciation on straight line method. If prevailing interest rate in the market is 14% then what would be the impact on deferred tax?
6. On 1st April 2008 number of shares outstanding was 1800. On 31st August 600 fresh shares were issued for cash consideration. On 1st January 2009 the company purchased back 600 of its own shares. If the