Question 29 Chapter 10 of +2-Part-1
Table of Contents
29. (Purchase of own debentures for immediate cancellation) On 31 March 2016 A company purchased for immediate cancellation 300 12% Debentures of Rs. 100 each at Rs. 96. Interest is payable on 31 March and 30 September. Pass necessary entries. Ignore DRR & DRI.
The solution of Question 29 Chapter 10 of +2 Part-1:-
Journal |
|||||
Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
2016 | |||||
Mar. 31 | Debenture A/c | Dr. | 30,000 | ||
Interest on Debenture A/c | Dr. | 900 | |||
To Bank A/c | 29,700 | ||||
To Profit on Redemption A/c | 1,200 | ||||
(Being 300 debentures purchased @ Rs. 96 ex-interest & immediately cancelled ) | |||||
Profit on Redemption A/c | Dr. | 1,200 | |||
To Capital Reserve A/c | 1,200 | ||||
(Being profit on redemption transferred to capital reserve ) | |||||
It all about Question 29 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
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