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Question 19 Chapter 10 of Class 12 Part – 2 – 2024
19. (Issue of debentures/Redemption in installments and at premium) On 1 April, 2011 Reebock Ltd; an unlisted co, issued 8,000 10% Debentures of 100 each at par, redeemable at 5% premium in two installment commencing from 30th September, 2015. It was resolved to transfer required amount to Debenture Redemption Reserve in three equal installments commencing from 31 March, 2012 The required investment was made in Govt. Securities at 9% pa. Journalise the transactions from 1 April, 2011 to 30th September, 2015 ignoring interest on debentures, TDS and loss on issue of debentures.
We are providing a solution of Question 19 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 19 to 21 Chapter no. 10 class 12 of Usha publication. To check the direct solution of question no. 19 from the following video by using time stamps of the video.
Journal
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
|---|---|---|---|---|---|
| Apr.1,11 | Bank A/c | Dr. | 8,00,000 | ||
| To 10% Debenture Application A/c | 8,00,000 | ||||
| (Being 8,000 debentures of Rs. 100 each issued) | |||||
| May 31 | 10% Debenture Application A/c | Dr. | 8,00,000 | ||
| Loss on issue of Debenture A/c | Dr. | 40,000 | |||
| To 10 % Debenture A/c | 8,00,000 | ||||
| To Premium on redemption A/c | 40,000 | ||||
| (Being 8,000 debentures of Rs. 100 each issued) | |||||
| Mar.31,12 | Statement of Profit & loss | Dr. | 66,667 | ||
| To Debenture Redemption Reserve A/c | 66,667 | ||||
| (Being DRR created on 1/3 of Rs. 2,00,000) | |||||
| Mar.31,13 | Statement of Profit & loss | Dr. | 66,667 | ||
| To Debenture Redemption Reserve A/c | 66,667 | ||||
| (Being DRR created on 1/3 of Rs. 2,00,000) | |||||
| Mar.31,14 | Statement of Profit & loss | Dr. | 66,667 | ||
| To Debenture Redemption Reserve A/c | 66,667 | ||||
| (Being DRR created on 1/3 of Rs. 2,00,000) | |||||
| Mar.31,15 | Debenture Redemption Investment A/c | Dr. | 1,20,000 | ||
| To Bank A/c | 1,20,000 | ||||
| (Being investment @ 15% of Rs. 8,00,000 made) | |||||
| Sep.30 | 10 % Debenture A/c | Dr. | 4,00,000 | ||
| Premium on Redemption of Debentures A/c | Dr. | 20,000 | |||
| To Bank A/c | 4,20,000 | ||||
| (Being debentures amount due) | |||||
| Debenture holders A/c | Dr. | 4,20,000 | |||
| To Bank A/c | 4,20,000 | ||||
| (Being amount paid to debentures holders ) | |||||
Note: 1. second instalment of debentures will be paid after 30th September , 2015 . Which is not given in the solution because entrees have been asked only up to 30th Sept. 2015.
2. DRI will be realised after redemptions 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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