Advertisement
Question 12 Chapter 10 of +2-Part-1
Advertisement
12. (Different Cases of Redemption) Pass journal entries in the following cases:
Rs. 4,00,000 10% debentures of Rs. 100 each redeemed at par.
(b) RS. 1,00,000 12% debentures of Rs. 100 each redeemed at Rs. 96.
(c) Rs. 2,00.000 12 % Debentures of Rs. 100 each redeemable at premium of 10% are cancelled by purchase in open market at RS. 102.
Note: In all the above cases DRR & DRI has already been created.
The solution of Question 12 Chapter 10 of +2 Part-1:-
Journal | |||||
Date | Particulars | L.F. | Debit ₹ | Credit ₹ | |
(a) | 10% Debenture A/c | Dr. | 4,00,000 | ||
To Debenture holders A/c | 4,00,000 | ||||
(Being amount due for redemption) | |||||
Debenture Holder A/c | Dr. | 4,00,000 | |||
To Bank A/c | 4,00,000 | ||||
(Being debentures redeemed) | |||||
(b) | 12% Debenture A/c | Dr. | 1,00,000 | ||
To Debenture holders A/c | 96,000 | ||||
To Profit on Redemption A/c | 4,000 | ||||
(Being amount due for redemption at discount) | |||||
Debenture holders A/c | Dr. | 96,000 | |||
To Bank A/c | 96,000 | ||||
(Being debentures redeemed) | |||||
(c) | 12% Debenture A/c | Dr. | 2,00,000 | ||
Premium on Redemption A/c | Dr. | 20,000 | |||
To Debenture holders A/c | 2,20, 000 | ||||
(Being amount due for redemption at premium) | |||||
Debenture Holder A/c | 2,20,000 | ||||
To Bank A/c | 2,04,000 | ||||
To Profit on Redemption A/c | 16, 000 | ||||
(Being debentures redeemed) |
It all about Question 12 Chapter 10 of +2-Part-1, If you have any problem please comment below.
Redemption of Debentures – explained with an example
Advertisement-X
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
Leave a Reply