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Question 10 Chapter 10 of +2-Part-1
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10. (Partial redemption/Premium on redemption) On 31 May 2017, a company redeemed its 1200 9% Debentures of Rs, 100 each at 5% premium out of the total 6,000 debentures. Debenture Redemption Reserve stood at Rs. 1,10,000. Premium on redemption was existing Company Accounts (Redemption of Debentures) Rs. 30,000. You are required to pass journal entries
The solution of Question 10 Chapter 10 of +2 Part-1: –
Y Ltd. Journal | |||||
Date | Particulars | L.F. | Debit ₹ | Credit ₹ | |
Apr.30,17 | Debenture Redemption Investment A/c | Dr. | 90,000 | ||
To Bank A/c | 90,000 | ||||
(Being DRI made @ 15 % on Rs. 6,00,000) | |||||
May 31 | Statement of Profit & loss | Dr. | 40,000 | ||
To Debenture Redemption Reserve A/c | 40,000 | ||||
(Being DRR created 25% on Rs. 6,00,000 Less : Rs. 1,10,000) | |||||
9 % Debenture A/c | Dr. | 1,20,000 | |||
Premium on Redemption of Debentures A/c | 6,000 | ||||
To Bank A/c | 1,26,000 | ||||
(Being amount due) | |||||
Debenture holders A/c | Dr. | 1,26,000 | |||
To Bank A/c | 1,26,000 | ||||
(Being amount paid to debentures holders) | |||||
Note: DRI will be realised after the redemption of all debentures.
It all about Question 10 Chapter 10 of +2-Part-1, If you have any problem please comment below.
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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
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