Question No 04 Chapter 3 – UNIMAX Class 12 Part 2 – 2021
Table of Contents
Punjab & Sindh Bank issued 40,000, 8% debenture of ₹ 100 each at a premium of 5% on sept.30,2018 redeemable on sept. 30,2022 the issue was fully subscribed. Record necessary entries for issue and redemption of debentures.
The solution of Question 04 Chapter 3 of +2 Part-2: –
Journal
Books of Punjab & Sindh Bank Ltd.
| Date | Particulars |
L.F. | Debit | Credit | |
| 2018 | |||||
| Sept.30 | Bank A/c | Dr. | 42,00,000 | ||
| To Debenture application & allotment A/c | 42,00,000 | ||||
| (Being receipt of application money) | |||||
| Sept.30 | Debenture Application & Allotment A/c | Dr. | 42,00,000 | ||
| To Debenture A/c | 40,00,000 | ||||
| To Securities premium reserve A/c | 2,00,000 | ||||
| (Being application money transferred) | |||||
| 2022 Sept.30 | Debenture A/c | Dr. | 40,00,000 | ||
| To Debenture holder A/c | 40,00,000 | ||||
| (Being amount due on redemption) | |||||
| Sept. 30 | Debenture holder A/c | Dr. | 10,00,000 | ||
| To Bank A/c | 10,00,000 | ||||
| (Being payment of amount due to debenture holders) | |||||
Note:
(1) As per Section 71 (4) with rule 18 (7) a banking company is not required to create debenture redemption reserve.
(2) A company which is not required to create DRR is exempted from investing 15%, amount also.
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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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