Question no 40 Chapter 2 - UNIMAX Class 12 Part 2

Question No 40 Chapter 2 – UNIMAX Class 12 Part 2 – 2021

Table of Contents

The solution of Question 40 Chapter 2 of +2 Part-2: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

On 1st April, 2019, Sun India Ltd. issued 15,000, 12% debentures of ₹ 10 each at a discount of 5%, redeemable at par as follows:

On 31st March, 2020	3,000 Debenture
On 31st March, 2021	7,500 Debenture
On 31st March, 2022	4,500 Debenture

Interest is paid annually on 31st March.

You are required to pass the journal entries, including for interest for the three years and prepare Discount on issue of debentures account.

The solution of Question 40 Chapter 2 of +2 Part-2: –

Journal

Date	Particulars		L.F.	Debit	Credit
2019
April 1	Bank A/c	Dr.		14,25,000
	To Debenture Application & Allotment A/c				14,25,000
	(Being debenture application money received)
April 1	Debenture Application & Allotment A/c	Dr.		14,25,000
	Discount on issue of debenture A/c	Dr.		75,000
	To Debenture A/c				15,00,000
	(Being 15,000, 12% debentures of ₹ 100 each issue at 5% discount)
2020
March 31	Debenture interest A/c	Dr.		1,80,000
	To Debenture holder A/c				1,80,000
	(Being interest due @ 12% p.a. on ₹ 15,00,000)
	Debenture holder A/c	Dr.		1,80,000
	To Bank A/c				1,80,000
	(Being transfer of debenture interest to statement of profit and loss)
	Statement of Profit & Loss A/c	Dr.		1,80,000
	To Debenture interest A/c				1,80,000
	(Being transfer of debenture interest of statement of profit and loss)
	Statement of Profit & Loss A/c	Dr.		75,000
	To Discount on issue of debenture A/c				75,000
	(Being discount on issue of debentures written off)
2021
March 31	Debenture interest A/c	Dr.		1,44,000
	To Debenture holder A/c				1,44,000
	(Being interest due @ ₹ 12% p.a. on ₹ 12,00,000)
	Debenture holder A/c	Dr.		1,44,000
	To Bank A/c				1,44,000
	(Being interest paid to debenture holders)
	Statement of profit & loss A/c	Dr.		1,44,000
	To Debentures interest A/c				1,44,000
	(Being transfer of debenture interest to statement of profit and loss)
2022
March 31	Debentures interest A/c	Dr.		54,000
	To debenture holder A/c				54,000
	(Being interest due @ ₹ 12% p.a. ₹ 4,50,000)
	Debenture holder A/c	Dr.		54,000
	To Bank A/c				54,000
	(Being interest paid to debenture holder)
	Statement of Profit & Loss A/c	Dr.		54,000
	To Debentures interest A/c				54,000
	(Being transfer of debenture interest to statement of profit and loss)

DISCOUNT ON ISSUE OF DEBENTURES ACCOUNT

Date	Particulars	Dr. (₹)	Date	Particulars	CR (₹)
2021			2022
April 1	To 12% Debentures A/c	75,000	March 31	By Statement of Profit Loss	75,000
		75,000			75,000