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Question 8 Chapter 10 of +2-Part-1
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8. (Redemption in Lumpsum/Balance of DRR is given) X Ltd. an unlisted co., had ₹ 8,00,000, 9% Debentures, due to be redeemed on 1st October, 2016 at a premium of 5%, The company had a Debenture Redemption Reserve of ₹ 4,14,000. Pass necessary journal entries at the time of redemption.
The solution of Question 8 Chapter 10 of +2 Part-1: –
| X Ltd. Journal |
|||||
| Date | Particulars |
L.F. | Debit ₹ | Credit ₹ | |
| 30-4-16 | Debenture Redemption Investment A/c | Dr. | 1,20,000 | ||
| To Bank A/c | 1,20,000 | ||||
| (Being the 15 % investment on April 30 in year of redemption) | |||||
| 1-10-16 | Bank A/c | Dr. | 1,20,000 | ||
| To Debenture Redemption Investment | 1,20,000 | ||||
| (Being investment encashed) | |||||
| Surplus in Statement of Profit & loss A/c (8,00,000 – 4,14,000) | Dr. | 3,86,000 | |||
| To Debenture Redemption Investment A/c | 3,86,000 | ||||
| (Being profit transferred to DRR) | |||||
| 9% Debenture A/c | Dr. | 8,00,000 | |||
| Premium on Redemption A/c | Dr. | 40,000 | |||
| To Debenture holders A/c | 8,40,000 | ||||
| (Being debentures redeemable at 10% premium ) | |||||
| Debenture Holder A/c | Dr. | 8,40,000 | |||
| To Bank A/c | 8,40,000 | ||||
| (Being debentures holders paid off ) | |||||
| Debenture Redemption Investment A/c | Dr. | 8,00,000 | |||
| To General Reserve A/c | 8,00,000 | ||||
| (Being DRR transferred ) | |||||
It all about Question 8 Chapter 10 of +2-Part-1, If you have any problem please comment below.
Redemption of Debentures – explained with an example
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End of Solution
Check Out the Solution of all questions of this chapter:
The solution to all questions of Chapter No. 10 – Company Accounts (Redemption of Debentures) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.
Question 4 Chapter 10 of +2-Part-1 – USHA Publication 12 Class Part – 1
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Question 22 Chapter 10 of +2-Part-1 – USHA Publication 12 Class Part – 1
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Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
Chapter No. 11 – Financial Statements of a Company
Chapter No. 12 – Financial Statement Analysis
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Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Accounting Ratios
Chapter No. 15 – Cash Flow Statement
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 2 Class 12 by Unimax Publication
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Check out Part 1 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 1, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 1 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 1 Class 12 by Unimax Publication
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