Question No 12 Chapter 3 – UNIMAX Class 12 Part 2 – 2021
Table of Contents
Akanksha Enterprises Ltd. (an unlisted company) issued 10,00,00,000 6% debenture of ₹ 10 each on September 1,2014 redeemable at premium of 7% as under:
| On March 31,2018 | 5,00,00,000 Debentures |
| On March 31, 2020 | 2,50,00,000 Debentures |
| On March 31,2022 | 2,50,00,000 Debentures |
The Board of Directors has also decided to transfer the required amount to debenture Redemption Reserve in four equal annual instalments starting with March 31,2015. Record necessary journal entries.
The solution of Question 12 Chapter 3 of +2 Part-2: –
Journal
Books of of Akansha Enterprises Ltd.
| Date | Particulars |
L.F. | Debit | Credit | |
| 2014 | |||||
| Bank A/c | Dr. | 100.00 | |||
| To Debenture application & Allotment A/c | 100.00 | ||||
| (Being application and allotment a/c received) | |||||
| Sept. 1 | Debenture application & allotment A/c | Dr. | 100.00 | ||
| Loss on issue of debenture A/c | Dr. | 7.00 | |||
| To Debenture A/c | 100.00 | ||||
| To Premium on Redemption A/c | 7.00 | ||||
| (Being 10 crore 6% debenture issued @ ₹ 10 per debenture redeemable at premium of 7%) | |||||
| March 31 | Statement in Profit & Loss A/c | Dr. | 7.00 | ||
| To Loss on issue of Debenture A/c | 7.00 | ||||
| (Being loss on issue of debenture written off) | |||||
| 2015 March 31 | Surplus statement of Profit & Loss A/c | Dr. | 2.5 | ||
| To Debenture redemption reserve A/c | 2.5 | ||||
| (Being transfer of Profit & Loss DRR) | |||||
| 2016 March 31 | Surplus statement of Profit & Loss A/c | Dr. | 2.5 | ||
| To Debenture redemption reserve A/c | 2.5 | ||||
| (Being transfer of Profit & Loss DRR) | |||||
| 2017 March 31 | Surplus statement of Profit & Loss A/c | Dr. | 2.5 | ||
| To Debenture redemption reserve A/c | 2.5 | ||||
| (Being transfer of Profit & Loss DRR) | |||||
| April 30 | Debenture Redemption Investment A/c | Dr. | 7.5 | ||
| To Bank A/c | 7.5 | ||||
| (Being 15% of face value is invested) | |||||
| 2018 March 31 | Surplus i.e. Balance in P&L A/c | Dr. | 2.5 | ||
| To Debenture redemption reserve A/c | 2.5 | ||||
| (Being profit transferred to create debentures redemption reserve) | |||||
| 2018 March 31 | Debentures A/c | Dr. | 50.00 | ||
| Premium on redemption of debenture A/c | Dr. | 3.50 | |||
| To Debenture holder A/c | 53.50 | ||||
| (Being amount due to debenture holder on redemption of debentures @ ₹ 10 each on 5 crore debenture and premium payable @ 5%p.a.) | |||||
| March 31 | Bank A/c | Dr. | 7.5 | ||
| To Debenture redemption investment A/c | 7.5 | ||||
| (Being investment encashed) | |||||
| 2018 March 31 | Debenture holder A/c | Dr. | 53.50 | ||
| To Bank A/c | 53.50 | ||||
| (Being payment made to debenture holder on redemption of debenture) | |||||
| Debenture redemption reserve A/c | Dr. | 5 | |||
| To General reserve A/c | 5 | ||||
| (Being transfer of proportionate amount of DRR to GR) | |||||
| Apr. 30 | Debenture Redemption Investment A/c | Dr. | 3.75 | ||
| To Bank A/c | 3.75 | ||||
| (Being 15% of face value is invested) | |||||
| 2020 March 31 | Debenture A/c | Dr. | 25.00 | ||
| Premium on Redemption of Debenture A/c | Dr. | 1.75 | |||
| To Debenture holder A/c | 26.75 | ||||
| (Being amount due to debenture holder on redemption of debenture @ ₹ 10 each on 2.5 crore debenture and premium payable @ 7%p.a.) | |||||
| March 31 | Bank A/c | Dr. | 3.75 | ||
| To Debenture redemption investment A/c | 3.75 | ||||
| (Being investment encashed) | |||||
| 2020 March 31 | Debenture holder A/c | Dr. | 26.75 | ||
| To Bank A/c | 26.75 | ||||
| (Being payment made to debenture holder on redemption of debenture) | |||||
| Debenture redemption reserve A/c | Dr. | 2.5 | |||
| To General reserve A/c | 2.5 | ||||
| (Being transfer of proportionate amount of DRR to GR) | |||||
| Apr. 30 | Debenture Redemption Investment A/c | Dr. | 3.75 | ||
| To Bank A/c | 3.75 | ||||
| (Being 15% of face value is invested) | |||||
| 2022 March 31 | Debenture A/c | Dr. | 25.75 | ||
| Premium on Redemption of Debenture A/c | Dr. | 1.75 | |||
| To Debenture holder A/c | 26.50 | ||||
| (Being amount due to debenture holder on redemption of debenture @ ₹ 10 each on 2.5 crore debenture and premium payable @ 5%p.a.) | |||||
| March 31 | Bank A/c | Dr. | 3.75 | ||
| To Debenture redemption investment A/c | 3.75 | ||||
| (Being investment encashed) | |||||
| 2022 March 31 | Debenture holder A/c | Dr. | 26.75 | ||
| To Bank A/c | 26.75 | ||||
| (Being payment made to debenture holder on redemption of debenture) | |||||
| March 31 | Debenture Redemption Reserve A/c | Dr. | 2.5 | ||
| To General reserve A/c | 2.5 | ||||
| (Being transfer of Proportionate amount of DRR to GR) | |||||
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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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