Question 41 Chapter 9 of +2-A – T.S. Grewal 12 Class

Question 41 Chapter 9 of +2-A

Question 41 Chapter 9 of +2-A

41. Bright Ltd. issued 5,000; 10% Debentures of 􀀀 100 each on 1st April, 2015 . The issue was fully subscribed . According to the terms of issue, interest on the debentures is payable half-yearly on 30th September and 31st March and the tax deducted at source is 10%.
Pass necessary journal entries related to the debenture interest for the year ending 31st March , 2016 and transfer of interest on debentures of the year to the Statement of Profit and Loss .

The solution of Question 41 Chapter 9 of +2-A: – 

 

Date Particulars
L.F. Debit Credit
2016          
31 Mar Debenture interest A/c Dr   25,000  
  To Debenture Holder’s A/c       22,500
  To Income Tax payable A/c       2,500
  (Being Debenture interest due )        
  Debenture Holder’s A/c Dr   25,000  
  Income Tax payable A/c Dr   25,000  
  To Bank A/c       50,000
  (Being interest o debenture paid)        
31 Mar Statement of Profit & Loss A/c Dr   50,000  
  To Debenture Interest A/c       50,000
  (Being Debenture interest transferred to profit and loss )        

 

 


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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)

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)

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