Question 42 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 42 Chapter 9 of +2-A

Table of Contents

The solution of Question 42 Chapter 9 of +2-A: –

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)

42. On 1st April, 2015, V.V.L.Ltd issued 1,000, 9% Debentures of Rs 100 each at a discount of 6%, redeemable at a premium of 10% after three years. Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31st March, 2016, assuming that interest is payable on 30th September and 31st March and the rate of tax deducted at source is 10%. The company closes its books on 31st March every year. .

The solution of Question 42 Chapter 9 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
2015
31 Apr	Bank A/c	Dr		94,000
	To Debenture Application and Allotment A/c				94,000
	(Being Debenture interest due )
	Debenture Application and Allotment A/c	Dr		94,000
	Loss on Issue of Debenture A/c	Dr		16,000
	To 9%Debenture A/c				1,00,000
	To Premium on Redemption of Debentures A/c				10,000
	(Being Debenture application and allotment money transferred to debenture A/c)
30 Sept	Debenture Interest A/c	Dr		4,500
	To Debenture holders A/c				4,050
	To TDS Payable A/c				450
	(Being interest and Tax due )
	Debenture holders A/c	Dr		4,050
	To Bank A/c				4,050
	(Being interest paid )
	TDX payable A/c	Dr		450
	To Bank A/c				450
	(Being Tax paid )
2016
31 Mar	Debenture Interest A/c	Dr		4,500
	To Debenture holders A/c				4,050
	To TDS Payable A/c				450
	(Being interest and Tax due )
	Debenture holders A/c	Dr		4,050
	To Bank A/c				4,050
	(Being interest paid )
	TDX payable A/c	Dr		450
	To Bank A/c				450
	(Being Tax paid )