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
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