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Question 23 Chapter 10 of +2-Part-1
23. (Ledger Accounts/Sinking Fund) On 31.3.2017 the following balances appeared in the books of Sun Light company.
| 12% Debentures | 5,00,000 |
| Debenture Redemption Fund | 3,90,000 |
| 10% Debenture Redemption fund Investment | 3,90,0,0 |
On this date all the investments were sold at Rs. 3,95,000 and the debentures were redeemed.
Prepare leager accounts.
12% Debentures Account
| Date | Particulars | ₹ | Date | Particulars | ₹ |
|---|---|---|---|---|---|
| 2013 | 2013 | ||||
| Mar. 31 | To Bank A/c | 5,00,000 | Mar. 31 | By Balance B/d | 5,00,000 |
| 1,00,000 | 1,00,000 |
Debentures Redemption Fund Account
| Date | Particulars | ₹ | Date | Particulars | ₹ |
|---|---|---|---|---|---|
| 2013 | 2013 | ||||
| Mar. 31 | To General Reserve | 3,90,000 | Mar. 31 | By Balance b/d | 3,90,000 |
| To Capital Reserve | 5,000 | By Deb. Red. Fund Investment A/c | 5,000 | ||
| 3,95,000 | 3,95,000 |
10 % Debentures Redemption Fund Investment Account
| Date | Particulars | ₹ | Date | Particulars | ₹ |
|---|---|---|---|---|---|
| 2013 | 2013 | ||||
| Mar. 31 | To Balance b/d | 3,90,000 | Mar. 31 | By Bank A/c | 3,95,000 |
| To Sinking Fund A/c | 5,000 | ||||
| 3,95,000 | 3,95,000 |
It all about Question 23 Chapter 10 of +2-Part-1, If you have any problem please comment below.
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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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