Question No 03 Chapter 3 – UNIMAX Class 12 Part 2 – 2021
Table of Contents
An infrastructure company has outstanding 30,000 5%, debenture of ₹ 100 each issued in 2016 due for redemption on March 31, 2022. It was decided to invest the required amount in investment earning 10% p.a. interest on April 30, 2021. Record necessary entries regarding redemption of debentures.
The solution of Question 03 Chapter 3 of +2 Part-2: –
Journal
Books of Infrastructure company
| Date | Particulars |
L.F. | Debit | Credit | |
| 2021 March 31 | Surplus is statement in Profit & Loss A/c | Dr. | 3,00,000 | ||
| To Debenture redemption reserve A/c | 3,00,000 | ||||
| (Being transfer of profit equal to 10% of the nominal value of debentures issued) | |||||
| April 30 | Debenture redemption investment A/c | Dr. | 4,50,000 | ||
| To Bank A/c | 4,50,000 | ||||
| (Being investment made @ 15% of the face value of debenture to be redeemed) | |||||
| 2020 March 31 | Bank A/c | Dr. | 4,91,250 | ||
| To Debenture redemption investment A/c | 4,50,000 | ||||
| To Interest received A/c | 41,250 | ||||
| (Being investment uncashed) | |||||
| March 31 | Debenture A/c | Dr. | 30,00,000 | ||
| To Debenture holder A/c | 30,00,000 | ||||
| (Being amount due to debenture holder on redemption) | |||||
| March 31 | Debenture holder A/c | Dr. | 30,00,000 | ||
| To Bank A/c | 30,00,000 | ||||
| (Being payment of amount due to debenture holder) | |||||
| March 31 | Debenture redemption reserve A/c | Dr. | 1,00,000 | ||
| To General reserve A/c | 1,00,000 | ||||
| (Being transfer of debenture redemption reserve A/c on redemption of all the debenture) | |||||
| March 31 | Interest received A/c | Dr. | 41,250 | ||
| To Statement of Profit & Loss A/c | 41,250 | ||||
| (Being transfer of interest on investment) | |||||
Note: As per new Guidelines infrastructure companies are also required to create debenture redemption reserve @ 10% of the face value of debentures.
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Share Capital: Meaning, Types, and Classes
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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