Question 40 Chapter 9 of +2-A – T.S. Grewal 12 Class

Question 40 Chapter 9 of +2-A

Question 40 Chapter 9 of +2-A

40. XYZ Ltd.issued 5,000 , 10% Debentures of Rs 100 each on 1st April, 2015 at a discount of 10% redeemable at a premium of 10% after 4 years. Give journal entries for the year ended 31st March, 2016, assuming that the interest was payable half-yearly on 30th September and 31st March. Tax is to be deducted @ 10%..

The solution of Question 40 Chapter 9 of +2-A: – 

 

Date Particulars
L.F. Debit Credit
2015          
1 Apr Bank A/c Dr   4,50,000  
  To Debenture Application A/c       4,50,000
  (Being Debenture Application Received )        
1 Apr Debenture Application A/c Dr   4,50,000  
  Loss on Issue of Debenture A/c Dr   1,00,000  
  To 10%Debenture A/c       5,00,000
  To Premium on Redemption A/c       50,000
  (Being Debenture issued on discount at par )        
30 Sep Interest on Debenture A/c Dr   25,000  
  To Debenture Holders A/c       22,500
  To Income tax Payable A/c       2,500
  (Being interest due on debenture )        
30 Sep Debenture holders A/c Dr   88,000  
  To Bank A/c       88,000
  (Being interest on Debenture paid to debenture holders )        
30 Sep Income Tax Payable A/c Dr   2,500  
  To Bank A/c       2,500
  (Being payment of Tax paid )        
2016          
31 Mar  Income Tax Payable A/c Dr   25,000  
  To Debenture holders A/c       22,500
  To Income Tax Payable A/c       2,500
  (Being interest due on debenture )        
31 Mar  Debenture holders A/c Dr   22,500  
  To Bank A/c       22,500
  (Being Debenture interest paid to Debenture holder )        
31 Mar  Income Tax Payable A/c Dr   2,500  
  To Bank A/c       2,500
  (Being payment of Tax on interest to debenture )        
31 Mar  Profit and Loss A/c Dr   50,000  
  To Interest on Debenture A/c       50,000
  (Being interest in debenture transferred to profit and loss account )        

 

 


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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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