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Question 28 Chapter 10 of +2-Part-1
28. (Balances given/Ledger A/c/Sinking Fund) On June 30, 2015 the following balances stood in the books of XYZ & Co. Ltd.:
10% 1st Mortgage Debentures Rs. 4,00,000; and Debentures Redemption Fund Rs. 4,26.100.The fund was invested in the following securities:
RS. 2,40,000, 5% Govt. Loan at Rs. 2,42,520 and Rs. 1,90,000, 4% Govt. Loan at Rs. 1,83,640.
To redeem the debentures on June 30, 2015 the above investments were sold on the same day as under :
5% Govt. Loan at par; and 4(1/2) % Govt. Loan at Rs. 96.
Prepare the necessary ledger accounts.
10% First Mortgage Debentures Account
| Date | Particulars | ₹ | Date | Particulars | ₹ |
|---|---|---|---|---|---|
| 2015 | 2015 | ||||
| June 30 | To Bank A/c | 4,00,000 | June 30 | By Balance B/d | 4,00,000 |
| 4,00,000 | 4,00,000 |
Debentures Redemption Fund Account
| Date | Particulars | ₹ | Date | Particulars | ₹ |
|---|---|---|---|---|---|
| 2015 | 2015 | ||||
| June 30 | To Deb. Red. Fund A/c | 3,760 | June 30 | By Balance b/d | 4,26,100 |
| To General Reserve A/c | 4,22,340 | ||||
| 4,26,100 | 4,26,100 |
Debentures Redemption Fund Investment Account
| Date | Particulars | ₹ | Date | Particulars | ₹ |
|---|---|---|---|---|---|
| 2015 | 2015 | ||||
| June 30 | To Balance b/d | June 30 | By Bank A/c | ||
| (i) 2,40,000 5% Govt. Loan | 2,42,520 | 5% Govt. Loan at par | 2,40,000 | ||
| (ii) 1,90,000 4(1/2)% Govt. Loan | 1,83,640 | 4(1/2) % Govt. Loan | 1,82,400 | ||
| To Deb. Red. Investment Fund A/c | 3,760 | ||||
| 4,26,160 | 4,26,160 |
It all about Question 28 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.
This guide covers "Question 28 Chapter 10 of +2-Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication +2 Part 1.
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