Question 8 Chapter 10 of +2-Part-1
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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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)
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Chapter No. 10 – Company Accounts (Redemption of Debentures)
Chapter No. 11 – Financial Statements of a Company
Chapter No. 12 – Financial Statement Analysis
Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Accounting Ratios
Chapter No. 15 – Cash Flow Statement
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- 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
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