Question 7 Chapter 10 of Class 12 Part – 2 – 2024

Question 7 Chapter 10 of Class 12 Part – 2 – 2024

7. (Redemption in Lumpsum) An unlisted company has to redeem Rs. 6,00,000 10% redeemable debentures on 31 May, 2016. Journalise the redemption entries assuming all legal requirements are met by the company.

The solution of Question 7 Chapter 10 of Class 12 Part – 2 – 2024: -

We are providing a solution of Question 7 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:

1. Check out the Solution of this question in Video Format:-

The video consists solution of question numbers from 6 to 10 Chapter no. 10 class 12 of Usha publication. To check the direct solution of question no. 7 from the following video by using time stamps of the video.

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2. Check out the Solution of Question 7 Chapter 10 of Class 12 Part – 2 – 2024 in Article Format:-​

Journal

Date	Particulars		L.F.	Debit ₹	Credit ₹
2018 May 31	10% Debenture A/c	Dr.		6,00,000
	To Debenture holders A/c				6,00,000
	(Being debentures due )
	Debenture Holder A/c	Dr.		6,00,000
	To Bank A/c				6,00,000
	(Being payment made to debentures holders)
June 30	Bank A/c	Dr.		90,000
	To Debenture Redemption Investment A/c				90,000
	(Being the investment sold)
	Debenture Redemption Investment A/c	Dr.		1,50,000
	To General Reserve A/c				1,50,000
	(Being DRR transferred)

Note : As per the question all legal requirements have been met which means DRR @ 25% & DRI @ 15% have been created , therefore , these entries have not been passed .