Question 13 Chapter 10 of +2-Part-1
13. (Redemption by Drawings of lots) On 31.3.2019, X Ltd, a listed co., had a balance of Rs. 6,00,000, 8% Debentures. Out of these 25% debentures were redeemed by draw of lots at premium of 25%.
The solution of Question 13 Chapter 10 of +2 Part-1:-
| X Ltd. Journal |
|||||
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
| 30-4-18 | Debenture Redemption Investment A/c(1,50,000 X 15/100) | Dr. | 22,500 | ||
| To Bank A/c | 22,500 | ||||
| (Being 15 % investment made for 25% of Rs. 6,00,000 debentures ) | |||||
| 31-3-19 | Surplus in Statement of Profit & loss | Dr. | 1,50,000 | ||
| To Debenture Redemption Reserve A/c (6,00,000 X25/100) | 1,50,000 | ||||
| (Being DRR created 25% of nominal value of debentures ) | |||||
| Mar.31 | 8 % Debenture A/c | Dr. | 1,50,000 | ||
| Premium on Redemption of Debentures A/c | Dr. | 37,500 | |||
| To Bank A/c | 1,87,500 | ||||
| (Being Debentures due for redemption out of capital at 25% premium) | |||||
| Mar.31 | Debenture holders A/c | Dr. | 1,87,500 | ||
| To Bank A/c | 1,87,500 | ||||
| (Being debentures holders paid off) | |||||
Working Note:
1. Investment will not be payable enchased on March 31,2019 because , investment will again have to be made in the next year for redemption purpose .
2. DRI is transferred to General Reserve after the redemption of all debentures
It all about Question 13 Chapter 10 of +2-Part-1, If you have any problem please comment below.
Redemption of Debentures – explained with an example
End of Solution
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Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum
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Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
Chapter No. 11 – Financial Statements of a Company
Chapter No. 12 – Financial Statement Analysis
Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Accounting Ratios
Chapter No. 15 – Cash Flow Statement
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 2 Class 12 by Unimax Publication
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
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1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
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