
Question 4 Chapter 10 of +2-Part-1
4. (Journal) On 31 March 2017, an unlisted company has Rs. 15,00,000 10% Debentures outstanding. These are to be redeemed on 30th June, 2018. Ignore interest and tax. Pass Journal entries.
The solution of Question 4 Chapter 10 of +2 Part-1: –
Journal |
|||||
Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
2018 Apr. 30 | Debenture Redemption Investment A/c | Dr. | 2,25,000 | ||
To Bank A/c | 2,25,000 | ||||
(Being the investment made @ 15% on Rs. 15,00,000) | |||||
June 30 | Statement of Profit & loss | Dr. | 3,75,000 | ||
To Debenture Redemption Investment A/c | 3,75,000 | ||||
(Being 25% of 15,00,0000 created as DRR) | |||||
June 30 | 10% Debenture A/c | Dr. | 15,00,000 | ||
To Debenture holders A/c | 15,00,000 | ||||
(Being debentures due ) | |||||
Bank A/c | Dr. | 2,25,000 | |||
To Debenture Redemption Investment A/c | 2,25,000 | ||||
(Being the investment sold ) | |||||
Debenture Holder A/c | Dr. | 15,00,000 | |||
To Bank A/c | 15,00,000 | ||||
(Being payment made to debenturesholders) | |||||
Debenture Redemption Investment A/c | Dr. | 3,75,000 | |||
To General Reserve A/c | 3,75,000 | ||||
(Being DRR transferred ) |
It all about Question 4 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