Question 33 Chapter 10 of +2-Part-1
Table of Contents
33. (Purchases of own debentures/Journal) A company purchased as investment 500 10% Debentures of Rs. 100 each at Rs. 98 on 1 April 2015. Interest is payable annually on 31 March. These debentures were cancelled on 31 March, 2016. Pass entries.
The solution of Question 33 Chapter 10 of +2 Part-1:-
| Satish Ltd. Journal |
|||||
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
| 2015 | |||||
| Apr. 1 | Own Debentures A/c | Dr. | 49,000 | ||
| To Bank A/c | 49,000 | ||||
| (Being 200 debentures purchased as investment) | |||||
| 2016 | |||||
| Mar. 31 | 10 % Debentures A/c | Dr. | 50,000 | ||
| To Own Debentures A/c | 49,000 | ||||
| To Profit on Redemption A/c | 1,000 | ||||
| (Being own debentures cancelled) | |||||
| 2016 | |||||
| Mar. 31 | Profit on Redemption A/c | 1,000 | |||
| To Capital Reserve A/c | 1,000 | ||||
| (Being profit on redemption transferred to Capital Reserve) | |||||
It all about Question 33 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