Question 26 Chapter 10 of +2-Part-1
26. (Debenture A/c/Debenture Redemption Fund A/c/Debenture Redemption Fund Investment A/e) The balance sheet of Vansh Ltd., disclosed the following information on 1.1.2017:
| 13% Debentures | 7,00,000 |
| Debenture redemption fund | 5,00,000 |
| Debenture redemption fund investments (interest @ 13% on investments) | 5,00,000 |
The annual contribution to the debenture redemption fund was Rs. 70,000. The debentures were redeemable on December 31, 2018. On 31st December 2018 the investments were sold for Rs. 7,00,000 and the debentures were redeemed.
Prepare Debentures debenture redemption fund and debenture redemption fund investment accounts for the years 2017 and 2018.
The solution of Question 26 Chapter 10 of +2 Part-1:-
Vansh Limited
13% Debentures Account
| Date | Particulars | ₹ | Date | Particulars | ₹ |
| 2017 | 2017 | ||||
| Dec. 31 | To Balance c/d | 7,00,000 | Jan. 1 | By Balance B/d | 7,00,000 |
| 7,00,000 | 7,00,000 | ||||
| 2018 | 2018 | ||||
| Dec. 31 | To Debentures Holders A/c | 7,00,000 | Jan. 1 | By Balance B/d | 7,00,000 |
| 7,00,000 | 7,00,000 |
Debentures Redemption Fund Account
| Date | Particulars | ₹ | Date | Particulars | ₹ |
| 2017 | 2017 | ||||
| Dec. 31 | To Balance c/d | 6,35,000 | Jan. 1 | By Balance b/d | 5,00,000 |
| Dec. 31 | By Interest on Sinking Fund Investment A/c | 65,000 | |||
| Dec. 31 | By Profit & Loss Appropriation A/c | 70,000 | |||
| 8,52,550 | 8,52,550 | ||||
| 2018 | 2018 | ||||
| Dec. 31 | To General Reserve | 8,52,550 | Jan. 1 | By Balance b/d | 6,35,000 |
| Dec. 31 | By Interest on Sinking Fund Investment A/c | 82,550 | |||
| Dec. 31 | By Profit & Loss Appropriation A/c | 70,000 | |||
| Dec. 31 | By Debentures Sinking Fund Investment A/c | 65,000 | |||
| 8,52,550 | 8,52,550 |
Debentures Redemption Fund Investment Account
| Date | Particulars | ₹ | Date | Particulars | ₹ |
| 2017 | 2017 | ||||
| Jan. 1 | To Balance b/d | 5,00,000 | Dec. 31 | By Balance c/d | 6,35,000 |
| Dec. 31 | To Bank A/c | 1,35,000 | |||
| 6,35,000 | 6,35,000 | ||||
| 2018 | 2018 | ||||
| Jan. 1 | To Balance b/d | 6,35,000 | Dec. 31 | By Bank A/c | 7,00,000 |
| Dec. 31 | To Debentures Sinking Fund A/c | 65,000 | |||
| 7,00,000 | 7,00,000 |
It all about Question 26 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
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
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
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- 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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