Question 17 Chapter 10 of +2-A - T.S. Grewal 12 Class

 

The solution of Question 17 Chapter 10 of +2-A: - 

 

Books of Apollo Ltd

Date	Particulars		L.F.	Debit	Credit
2015
Mar. 31	Surplus i.e., Balance in Statement of Profit & Loss A/c	Dr		3,00,000
	To Debentures Redemption Reserve A/c				3,00,000
	(Being Amount transferred to DRR)
Apr.30	Debenture Redemption Investment A/c	Dr		3,00,000
	To Bank A/c				3,00,000
	(Being Amount invested unspecified security)
Aug.31	Bank A/c	Dr		3,00,000
	To Debenture Redemption Investment A/c				3,00,000
	(Being Profit transferred to Debenture Redemption Reserve)
Aug.31	9% Debenture A/c	Dr		20,00,000
	To Debenture Redemption Investment A/c				20,00,000
	(Being Debenture due for redemption)
Aug.31	Debenture holders' A/c	Dr		20,00,000
	To Bank A/c				20,00,000
	(Being Amount paid to debenture holders)
Aug.31	Debenture Redemption Reserve A/c	Dr		5,00,000
	To General Reserve A/c				5,00,000
	(Being DRR amount is transferred to General Reserve )

 

Working Notes:

Amount required to be transferred to DRR	=25% of Face Value of Debentures
			= 25% of Rs 20,00,000 = Rs 5,00,000
Existing Balance in DRR = Rs 2,00,000
Therefore, Amount transferred to DRR = Rs 5,00,000 – 2,00,000 = Rs 3,00,000
Amount required to be transferred to DRI	= 15% of Face Value of Debentures
	= 15% of Rs 20,00,000 = Rs 3,00,000

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication