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Question 36 Chapter 10 of +2-Part-1
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Table of Contents
36. (Redemption by issue of equity shares) Godrej Company on 1st January 2015 issued. 21,000 12% Debentures of Rs. 100 each. The debentures were redeemed on 31st December, 2015 by issuing equity shares of Rs. 10 each at par. Pass entries for issue and redemption when debentures were issued (i) at par (ii) at discount of 10% and (iii) premium of 5%.
The solution of Question 36 Chapter 10 of +2 Part-1:-
| Journal |
|||||
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
| (i) Issue At par | |||||
| 1.1.15 | Bank A/c | Dr. | 21,00,000 | ||
| To Debenture Application & Allotment A/c | 21,00,000 | ||||
| (Being app. Received for 21,000 debentures) | |||||
| Debenture Application & Allotment A/c | Dr. | 21,00,000 | |||
| To 12 % Debenture A/c | 21,00,000 | ||||
| (Being debentures allotted) | |||||
| 12 % Debenture A/c | Dr. | 21,00,000 | |||
| To Equity share A/c | 21,00,000 | ||||
| (Being debentures redeemed by converting into equity shares ) | |||||
| (ii) Issue At discount of 10% | |||||
| 1.1.15 | Bank A/c | Dr. | 18,90,000 | ||
| To Debenture Application & Allotment A/c | 18,90,000 | ||||
| (Being app. Received for 21,000 debentures) | |||||
| Debenture Application & Allotment A/c | Dr. | 18,90,000 | |||
| Discount on Debenture A/c | Dr. | 2,10,000 | |||
| To 12 % Debenture A/c | 21,00,000 | ||||
| (Being debentures allotted at 10 % discount ) | |||||
| 12 % Debenture A/c | Dr. | 21,00,000 | |||
| To Equity share A/c | 21,00,000 | ||||
| (Being debentures redeemed by converting into equity shares) | |||||
| (iii) Issue At premium of 5% | |||||
| 1.1.15 | Bank A/c | Dr. | 22,05,000 | ||
| To Debenture Application & Allotment A/c | 22,05,000 | ||||
| (Being app. Received for 21,000 debentures) | |||||
| Debenture Application & Allotment A/c | Dr. | 22,05,000 | |||
| To 12 % Debenture A/c | 21,00,000 | ||||
| To Secruity premium Reserve A/c | 1,05,000 | ||||
| (Being debentures allotted at 5% premium) | |||||
| 31.12.15 | 12 % Debenture A/c | Dr. | 21,00,000 | ||
| To Equity share A/c | 21,00,000 | ||||
| (Being debentures redeemed by converting into equity shares ) | |||||
It all about Question 36 Chapter 10 of +2-Part-1, If you have any problem please comment below.
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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