Question 33 Chapter 9 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 33 Chapter 9 of +2-Part-1

33. (Interest on Debentures) Shveta Ltd. issued 40,000, 12% debentures of ₹ 100 each on 1st April, 2017. Interest on these debentures is paid half yearly i.e. on 30th June and 31st December. Pass necessary journal entries for the year 2017, assuming income tax is deducted at 20% on the amount of interest.

The solution of Question 33 Chapter 9 of +2 Part-1: –

Journal
Date	Particulars		L.F.	Debit ₹	Credit ₹
30-6-17	Interest on Debentures A/c	Dr.		2,40,000
	To Bank A/c				1,92,000
	To Income Tax Payable A/c				48,000
	(Being interest on debentures paid after deducting tax @20%)
30-6-17	Income Tax Payable A/c	Dr.		48,000
	To Bank A/c				48,000
	(Being tax paid)
31-12-17	Interest on Debentures A/c	Dr.		2,40,000
	To Bank A/c				1,92,000
	To Income Tax Payable A/c				48,000
	(Being interest on debentures paid after deducting tax @20%)
31-12-17	Income Tax Payable A/c	Dr.		96,000
	To Bank A/c				96,000
	(Being tax paid)

It all about Question 33 Chapter 9 of +2-Part-1, If you have any problem please comment below.

Issue of Debentures from the point of view of Redemption

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