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

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

Question 33 Chapter 9 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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