Question no 08 Chapter 3 – UNIMAX Class 12 Part 2 – 2021

Question no- 08 Chapter no -3 Unimax Class-12 Part-II
Question no- 08 Chapter no -3 Unimax Class-12 Part-II

Question No  08 Chapter 3 – UNIMAX  Class 12 Part 2 – 2021

On 1st April, 2018 Mayur Ltd. (an unlisted company) invited application for issuing 8,000, 5% debenture of ₹ 100 each at a discount of 5%. There debenture were repayable at the end of 3rd year at a premium of 10%. Application for 10,000 debenture were received and the debentures were on pro-rata basis to all the applicants excess money received with application was refunded.
The Directors decided to transfer the minimum amount to debenture redemption reserve on 31-3-21, the company invested the necessary amount in 8% bank fixed deposit as per the provision of the companies Act, 2013. Tax deducted at source by bank on interest @ 10%p.a.

The solution of Question 08 Chapter 3 of +2 Part-2: –

Journal
 Books of Mayur Ltd.

Date   Particulars
L.F. Debit Credit
2018          
April 1 Bank A/c Dr.   9,50,000  
  To Debenture application & allotment A/c       9,50,000
  (Being application & allotment money received, 10,000*₹ 95)        
April 1 Debenture Application & Allotment A/c Dr.   9,50,000  
  Loss on issue of debenture A/c Dr.   1,20,000  
  To Debenture A/c     8,00,000
  To Premium on redemption of debenture A/c     80,000
  To Bank A/c     1,90,000
  (Being allotment of debenture redeemable at 10% premium)        
2019 March 31 Statement of Profit & Loss A/c Dr.   1,20,000  
  To Loss on issue of debenture A/c     1,20,000
  (Being loss on issue of debenture written off)        
2021 March 31 Surplus is statement in Profit & Loss A/c Dr.   80,000  
  To Debenture redemption reserve A/c     80,000
  (Being transfer of profit equal to 10% of ₹ 8,00,000)        
2022 March 31 Debenture redemption investment A/c Dr.   1,20,000  
  To Bank A/c     1,20,000
  (Being investment made @ 15% of ₹ 8,00,000)      
2022 March 31 Bank A/c Dr.   1,28,640  
  TDS deposited A/c Dr.   960  
  To Debenture Redemption Investment A/c     1,20,000
  To Interest received A/c     9,600
  (Being fixed deposit encashed on redemption)      
March 31 Debenture A/c Dr.   8,00,000  
  Premium on Redemption Reserve A/c Dr.   80,000  
  To Debenture holder A/c     8,80,000
  (Being amount due to debenture holder)      
March 31 Debenture holder A/c Dr.   8,80,000  
  To Bank A/c       8,80,000
  (Being amount paid on redemption)        
March 31 Debenture redemption reserve A/c Dr.   80,000  
  To General reserve A/c       80,000
  (Being debenture redemption reserve transferred to general reserve)        
March 31 Interest received A/c Dr.   9,600  
  To Statement of Profit & Loss A/c       9,600
  (Being transfer of interest on investment)        

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