Question 1 Chapter 10 of +2-Part-1
1. (Amount of DRR/Journal) Punjab National Bank has Outstanding Balance of 3,000 9% Debentures of Rs. 100 each on 31st March, 2015. These are redeemable on 20th August, 2016. How much DRR will be created? Pass entries in Journal for redemption.
The solution of Question 1 Chapter 10 of +2 Part-1: –
| Journal |
|||||
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
| 9 % Debenture Application A/c | Dr. | 3,00,000 | |||
| To Debenture holders A/c | 3,00,000 | ||||
| (Being amount due to debentures holders) | |||||
| Debenture Holder A/c | Dr. | 3,00,000 | |||
| To Bank A/c | 3,00,000 | ||||
| (Being payment made) | |||||
Note : Bank are exempted to create Debentures Redemption Reserve under Rule 18 (7) of Companies Act ,2014 . Hence, in this case Punjab National Bank will not create any DRR
It all about Question 1 Chapter 10 of +2-Part-1, If you have any problem please comment below.
Redemption of Debentures – explained with an example
You can also Check out the solved question of other Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement