Question 13 Chapter 10 of Class 12 Part – 2 – 2024

Question 13 Chapter 10 of Class 12 Part – 2 – 2024

13. On 31st March, 2019, Tata Company Ltd., an unlisted Co., has 5,00,000 in 13% Debentures on which interest is outstanding for the year 2018-19 and it is paid now. There was a balance of 30,000 in debenture redemption reserve and ! 6,000 in discount on debentures account.
On this date it was decided to redeem all the debentures and write off debenture discount. There was sufficient profit in Profit and Loss. Journalise the above. Ignore Debenture Redemption investment.

The solution of Question 13 Chapter 10 of Class 12 Part – 2 – 2024:-

We are providing a solution of Question 13 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:

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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. 13 from the following video by using time stamps of the video.

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2. Check out the Solution of Question 13 Chapter 10 of Class 12 Part – 2 – 2024 in Article Format:-

In the Books of Tata Company Ltd.
Journal

Date	Particulars		L.F.	Debit	Credit
31/3/19	Statement of Profit & Loss A/c	Dr.		20,000
	To Debenture Redemption Reserve A/c				20,000
	(Being DRR @ 10% created)
	Interest on Debentures A/c	Dr.		65,000
	To Debentureholders’ A/c				58,500
	To Income Tax Payable A/c				6,500
	(Being Interest on Debenture due)
	Debentureholders A/c	Dr.		58,500
	Income Tax Payable A/c	Dr.		6,500
	To Bank A/c				65,000
	(Being interest on debentures & income tax paid)
	13% Debentures A/c	Dr.		5,00,000
	To Debentureholders A/c				5,00,000
	(Being amount due to debentureholders due to redemption of debentures)
	Debentureholders A/c	Dr.		5,00,000
	To Bank A/c				5,00,000
	(Being debentureholders’ paid off)
	Statement of Profit & Loss A/c	Dr.		71,000
	To discount on Debenture A/c				6,000
	To interest on Debentures A/c				65,000
	(Being discount & Interest on Debenture written off)
	Debenture Redemption Reserve A/c	Dr.		50,000
	To General Reserve A/c				50,000
	(Being DRR transferred to General Reserve A/c)