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Question 1 Chapter 10 of +2-Part-1
1. (Amount of DRR/Journal) Punjab National Bank has Outstanding Balance of 3,000 9% Debentures of Rs. 100 each on 31st March, 2015. These are redeemable on 20th August, 2016. How much DRR will be created? Pass entries in Journal for redemption.
Journal
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
|---|---|---|---|---|---|
| 9 % Debenture Application A/c | Dr. | 3,00,000 | |||
| To Debenture holders A/c | 3,00,000 | ||||
| (Being amount due to debentures holders) | |||||
| Debenture Holder A/c | Dr. | 3,00,000 | |||
| To Bank A/c | 3,00,000 | ||||
| (Being payment made) | |||||
Note : Bank are exempted to create Debentures Redemption Reserve under Rule 18 (7) of Companies Act ,2014 . Hence, in this case Punjab National Bank will not create any DRR
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 1 Chapter 10 of +2-Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter No. 10 - Company Accounts – Redemption of Debenture - Usha Publication.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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