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

Question 41 Chapter 9 of +2-A
Question No41 - Chapter No.9 - T.S. Grewal +2 Book 2019-Solution

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Question 41 Chapter 9 of +2-A

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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: – 

 

DateParticulars
L.F.DebitCredit
2016     
31 MarDebenture interest A/cDr 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/cDr 25,000 
 Income Tax payable A/cDr 25,000 
 To Bank A/c   50,000
 (Being interest o debenture paid)    
31 MarStatement of Profit & Loss A/cDr 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)

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

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