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Question 12 Chapter 10 of Class 12 Part – 2 – 2024
12. (Partial redemption/Premium on redemption) On 31 May 2017, a company redeemed its 1200 9% Debentures of Rs, 100 each at 5% premium out of the total 6,000 debentures. Debenture Redemption Reserve stood at Rs. 1,10,000. Premium on redemption was existing Company Accounts (Redemption of Debentures) Rs. 30,000. You are required to pass journal entries
We are providing a solution of Question 12 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 11 to 15 Chapter no. 10 class 12 of Usha publication. To check the direct solution of question no. 12 from the following video by using time stamps of the video.
Y Ltd. Journal
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
|---|---|---|---|---|---|
| Apr.30,17 | Debenture Redemption Investment A/c | Dr. | 90,000 | ||
| To Bank A/c | 90,000 | ||||
| (Being DRI made @ 15 % on Rs. 6,00,000) | |||||
| May 31 | Statement of Profit & loss | Dr. | 40,000 | ||
| To Debenture Redemption Reserve A/c | 40,000 | ||||
| (Being DRR created 25% on Rs. 6,00,000 Less : Rs. 1,10,000) | |||||
| 9 % Debenture A/c | Dr. | 1,20,000 | |||
| Premium on Redemption of Debentures A/c | 6,000 | ||||
| To Bank A/c | 1,26,000 | ||||
| (Being amount due) | |||||
| Debenture holders A/c | Dr. | 1,26,000 | |||
| To Bank A/c | 1,26,000 | ||||
| (Being amount paid to debentures holders) | |||||
Note: DRI will be realised after the redemption of all debentures.
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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