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Question 10 Chapter 10 of Class 12 Part – 2 – 2024
10. (Redemption in Lumpsum/Balance of DRR is given) X Ltd. an unlisted co., had ₹ 8,00,000, 9% Debentures, due to be redeemed on 1st October, 2016 at a premium of 5%, The company had a Debenture Redemption Reserve of ₹ 4,14,000. Pass necessary journal entries at the time of redemption.
We are providing a solution of Question 10 Chapter 10 of Class 12 Part – 2 Usha Publication in two formats. one is in Video format and another is in article format. Check out both formats as follows:
The video consists solution of question numbers from 6 to 10 Chapter no. 10 class 12 of Usha publication. To check the direct solution of question no. 10 from the following video by using time stamps of the video.
X Ltd. Journal
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
|---|---|---|---|---|---|
| 30-4-16 | Debenture Redemption Reserve A/c | Dr. | 1,20,000 | ||
| To Bank A/c | 1,20,000 | ||||
| (Being the 15 % investment on April 30 in year of redemption) | |||||
| 1-10-16 | Bank A/c | Dr. | 1,20,000 | ||
| To Debenture Redemption Reserve A/c | 1,20,000 | ||||
| (Being investment encashed) | |||||
| Surplus in Statement of Profit & loss A/c (8,00,000 - 4,14,000) | Dr. | 3,86,000 | |||
| To Debenture Redemption Reserve A/c | 3,86,000 | ||||
| (Being profit transferred to DRR) | |||||
| 9% Debenture A/c | Dr. | 8,00,000 | |||
| Premium on Redemption A/c | Dr. | 40,000 | |||
| To Debenture holders A/c | 8,40,000 | ||||
| (Being debentures redeemable at 10% premium ) | |||||
| Debenture Holder A/c | Dr. | 8,40,000 | |||
| To Bank A/c | 8,40,000 | ||||
| (Being debentures holders paid off ) | |||||
| Debenture Redemption Reserve A/c | Dr. | 8,00,000 | |||
| To General Reserve A/c | 8,00,000 | ||||
| (Being DRR transferred ) | |||||
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.
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