TS Grewal i (2014) Solutions for Class 12 Commerce Accountancy Chapter 9 Company Accounts Redemption Of Debentures are provided here with simple step-by-step explanations. These solutions for Company Accounts Redemption Of Debentures are extremely popular among class 12 Commerce students for Accountancy Company Accounts Redemption Of Debentures Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the TS Grewal i (2014) Book of class 12 Commerce Accountancy Chapter 9 are provided here for you for free. You will also love the ad-free experience on Meritnation’s TS Grewal i (2014) Solutions. All TS Grewal i (2014) Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.
Page No 9.25:
Question 1:
Answer:
In this case, as the maturity period of the issued debentures are not more than 18 months, so as per the SEBI's guidelines, the company is not required to create DRR.
Page No 9.25:
Question 2:
In this case, as the maturity period of the issued debentures are not more than 18 months, so as per the SEBI's guidelines, the company is not required to create DRR.
Answer:
The maturity period of the debenture is 12 months (i.e. from June 30, 2013 to June 30, 2014). As per the SEBI's guidelines, no DRR is required for the repayment of such debentures as their maturity period is less than the prescribed limit of 18 months.
Books of Nirabhi Chemicals Ltd. |
||||||||
Journal |
||||||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||||
|
Bank A/c |
Dr. |
|
5,40,00,000 |
|
|||
|
To 6% Debenture Application A/c |
|
|
5,40,00,000 |
||||
|
(Debenture application money received) |
|
|
|
||||
|
|
|
|
|
||||
|
6% Debenture Application A/c |
Dr. |
|
5,00,00,000 |
|
|||
|
To 6% Debentures A/c |
|
|
5,00,00,000 |
||||
|
To Securities Premium A/c |
|
|
40,00,000 |
||||
|
(Debenture application money transferred to debenture account) |
|
|
|
||||
|
|
|
|
|
||||
|
6% Debentures A/c |
Dr. |
|
5,00,00,000 |
|
|||
|
To Debentureholders’ A/c |
|
|
5,00,00,000 |
||||
|
(Debentures due for redemption) |
|
|
|
||||
|
|
|
|
|
||||
|
Debentureholders’ A/c |
Dr. |
|
5,00,00,000 |
|
|||
|
To Bank A/c |
|
|
5,00,00,000 |
||||
|
(Amount due for redemption paid to debenture holders) |
|
|
|
||||
|
|
|
|
|
Page No 9.25:
Question 3:
The maturity period of the debenture is 12 months (i.e. from June 30, 2013 to June 30, 2014). As per the SEBI's guidelines, no DRR is required for the repayment of such debentures as their maturity period is less than the prescribed limit of 18 months.
Books of Nirabhi Chemicals Ltd. |
||||||||
Journal |
||||||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||||
|
Bank A/c |
Dr. |
|
5,40,00,000 |
|
|||
|
To 6% Debenture Application A/c |
|
|
5,40,00,000 |
||||
|
(Debenture application money received) |
|
|
|
||||
|
|
|
|
|
||||
|
6% Debenture Application A/c |
Dr. |
|
5,00,00,000 |
|
|||
|
To 6% Debentures A/c |
|
|
5,00,00,000 |
||||
|
To Securities Premium A/c |
|
|
40,00,000 |
||||
|
(Debenture application money transferred to debenture account) |
|
|
|
||||
|
|
|
|
|
||||
|
6% Debentures A/c |
Dr. |
|
5,00,00,000 |
|
|||
|
To Debentureholders’ A/c |
|
|
5,00,00,000 |
||||
|
(Debentures due for redemption) |
|
|
|
||||
|
|
|
|
|
||||
|
Debentureholders’ A/c |
Dr. |
|
5,00,00,000 |
|
|||
|
To Bank A/c |
|
|
5,00,00,000 |
||||
|
(Amount due for redemption paid to debenture holders) |
|
|
|
||||
|
|
|
|
|
Answer:
Books of AFCONs India Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
5,00,00,000 |
|
|
To 9% Debenture Application A/c |
|
|
5,00,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
9% Debenture Application A/c |
Dr. |
|
5,00,00,000 |
|
|
To 9% Debentures A/c |
|
|
5,00,00,000 |
|
|
(Debenture application money transferred to debenture account) |
|
|
|
|
|
|
|
|
|
|
|
9% Debentures A/c |
Dr. |
|
5,00,00,000 |
|
|
To Debentureholders’ A/c |
|
|
5,00,00,000 |
|
|
(Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
5,00,00,000 |
|
|
To Bank A/c |
|
|
5,00,00,000 |
|
|
(Amount due for redemption paid to debenture holders) |
|
|
|
|
|
|
|
|
|
Note: As per the SEBI's guidelines, Infrastructure Companies are exempted from creating DRR. Hence, in this case, no DRR is to be created.
Page No 9.25:
Question 4:
Books of AFCONs India Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
5,00,00,000 |
|
|
To 9% Debenture Application A/c |
|
|
5,00,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
9% Debenture Application A/c |
Dr. |
|
5,00,00,000 |
|
|
To 9% Debentures A/c |
|
|
5,00,00,000 |
|
|
(Debenture application money transferred to debenture account) |
|
|
|
|
|
|
|
|
|
|
|
9% Debentures A/c |
Dr. |
|
5,00,00,000 |
|
|
To Debentureholders’ A/c |
|
|
5,00,00,000 |
|
|
(Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
5,00,00,000 |
|
|
To Bank A/c |
|
|
5,00,00,000 |
|
|
(Amount due for redemption paid to debenture holders) |
|
|
|
|
|
|
|
|
|
Note: As per the SEBI's guidelines, Infrastructure Companies are exempted from creating DRR. Hence, in this case, no DRR is to be created.
Answer:
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2003 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
60,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
60,000 |
|
|
(Profit transferred to D.R.R) |
|
|
|
|
|
|
|
|
|
|
|
9% Debentures A/c |
Dr. |
|
8,00,000 |
|
|
To Debentureholders’ A/c |
|
|
8,00,000 |
|
|
(Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
8,00,000 |
|
|
To Bank A/c |
|
|
8,00,000 |
|
|
(Amount due to debentureholders paid) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
4,00,000 |
|
|
To General Reserve |
|
|
4,00,000 |
|
|
(D.R.R transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Page No 9.25:
Question 5:
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2003 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
60,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
60,000 |
|
|
(Profit transferred to D.R.R) |
|
|
|
|
|
|
|
|
|
|
|
9% Debentures A/c |
Dr. |
|
8,00,000 |
|
|
To Debentureholders’ A/c |
|
|
8,00,000 |
|
|
(Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
8,00,000 |
|
|
To Bank A/c |
|
|
8,00,000 |
|
|
(Amount due to debentureholders paid) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
4,00,000 |
|
|
To General Reserve |
|
|
4,00,000 |
|
|
(D.R.R transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Answer:
Books of W Ltd. |
|||||
Journal |
|||||
Date. |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
1,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
1,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
|
9% Debentures A/c |
Dr. |
|
3,00,000 |
|
|
To Debentureholders’ A/c |
|
|
3,00,000 |
|
|
(Debenture due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
3,00,000 |
|
|
To Bank A/c |
|
|
3,00,000 |
|
|
(Amount due to debentureholders paid) |
|
|
|
|
|
|
|
|
|
Page No 9.25:
Question 6:
Books of W Ltd. |
|||||
Journal |
|||||
Date. |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
1,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
1,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
|
9% Debentures A/c |
Dr. |
|
3,00,000 |
|
|
To Debentureholders’ A/c |
|
|
3,00,000 |
|
|
(Debenture due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
3,00,000 |
|
|
To Bank A/c |
|
|
3,00,000 |
|
|
(Amount due to debentureholders paid) |
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
1,20,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
1,20,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Debenture A/c |
Dr. |
|
1,20,000 |
|
|
Premium on Redemption of Debenture A/c |
Dr. |
|
6,000 |
|
|
To Debentureholders’ A/c |
|
|
1,26,000 |
|
|
(Debenture due for redemption along with premium) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
1,26,000 |
|
|
To Bank A/c |
Dr. |
|
|
1,26,000 |
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
1,20,000 |
|
|
To General Reserve A/c |
|
|
1,20,000 |
|
|
(Debenture Redemption Reserve transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Page No 9.25:
Question 7:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
1,20,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
1,20,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Debenture A/c |
Dr. |
|
1,20,000 |
|
|
Premium on Redemption of Debenture A/c |
Dr. |
|
6,000 |
|
|
To Debentureholders’ A/c |
|
|
1,26,000 |
|
|
(Debenture due for redemption along with premium) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
1,26,000 |
|
|
To Bank A/c |
Dr. |
|
|
1,26,000 |
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
1,20,000 |
|
|
To General Reserve A/c |
|
|
1,20,000 |
|
|
(Debenture Redemption Reserve transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
Answer:
In the Books of Mansi Ltd. Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
31/3/2011 |
Statement of Profit and Loss |
Dr. |
|
6,00,000 |
|
|
|
To Debenture Redemption Reserve |
|
|
|
|
|
|
(Being DRR created) |
|
|
|
6,00,000 |
|
|
|
|
|
|
|
|
|
10% Debentures A/c |
Dr. |
|
6,00,000 |
|
|
|
To Debentureholders A/c |
|
|
|
6,00,000 |
|
|
(Being 6000; 10% Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debentureholders A/c |
Dr. |
|
6,00,000 |
|
|
|
To Bank A/c |
|
|
|
6,00,000 |
|
|
(Being amount paid) |
|
|
|
|
|
Debenture Redemption Reserve | Dr. | 6,00,000 | ||||
To General Reserve | 6,00,000 | |||||
|
|
|
|
|
|
Page No 9.25:
Question 8:
In the Books of Mansi Ltd. Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
31/3/2011 |
Statement of Profit and Loss |
Dr. |
|
6,00,000 |
|
|
|
To Debenture Redemption Reserve |
|
|
|
|
|
|
(Being DRR created) |
|
|
|
6,00,000 |
|
|
|
|
|
|
|
|
|
10% Debentures A/c |
Dr. |
|
6,00,000 |
|
|
|
To Debentureholders A/c |
|
|
|
6,00,000 |
|
|
(Being 6000; 10% Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debentureholders A/c |
Dr. |
|
6,00,000 |
|
|
|
To Bank A/c |
|
|
|
6,00,000 |
|
|
(Being amount paid) |
|
|
|
|
|
Debenture Redemption Reserve | Dr. | 6,00,000 | ||||
To General Reserve | 6,00,000 | |||||
|
|
|
|
|
|
Answer:
Books of India Textiles Corporation Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
22,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
22,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve (25,00,000-3,00,000)) |
|
|
|
|
|
|
|
|
|
|
|
9% Debentures A/c |
Dr. |
|
50,00,000 |
|
|
To Debentureholders’ A/c |
|
|
50,00,000 |
|
|
(Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
50,00,000 |
|
|
To Bank A/c |
|
|
50,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
25,00,000 |
|
|
To General Reserve A/c |
|
|
25,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Page No 9.26:
Question 9:
Books of India Textiles Corporation Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
22,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
22,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve (25,00,000-3,00,000)) |
|
|
|
|
|
|
|
|
|
|
|
9% Debentures A/c |
Dr. |
|
50,00,000 |
|
|
To Debentureholders’ A/c |
|
|
50,00,000 |
|
|
(Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
50,00,000 |
|
|
To Bank A/c |
|
|
50,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
25,00,000 |
|
|
To General Reserve A/c |
|
|
25,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2007 |
|
|
|
|
|
April 01 |
Bank A/c |
Dr. |
|
40,00,000 |
|
|
To 8% Debenture Application A/c |
|
|
40,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
8% Debenture Application A/c |
Dr. |
|
40,00,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
2,00,000 |
|
|
To 8% Debentures A/c |
|
|
40,00,000 |
|
|
To Premium on Redemption of Debenture |
|
|
2,00,000 |
|
|
(Debenture issued with the term repayable at 5% premium) |
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
|
|
|
March, 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
10,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
10,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2009 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
10,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
10,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
June 30 |
8% Debentures A/c |
Dr. |
|
40,00,000 |
|
|
Premium on Redemption of Debenture A/c |
Dr. |
|
2,00,000 |
|
|
To Debentureholders’ A/c |
|
|
42,00,000 |
|
|
(Debenture due for redemption along with premium) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
20,00,000 |
|
|
To General Reserve A/c |
|
|
20,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Page No 9.26:
Question 10:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2007 |
|
|
|
|
|
April 01 |
Bank A/c |
Dr. |
|
40,00,000 |
|
|
To 8% Debenture Application A/c |
|
|
40,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
8% Debenture Application A/c |
Dr. |
|
40,00,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
2,00,000 |
|
|
To 8% Debentures A/c |
|
|
40,00,000 |
|
|
To Premium on Redemption of Debenture |
|
|
2,00,000 |
|
|
(Debenture issued with the term repayable at 5% premium) |
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
|
|
|
March, 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
10,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
10,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2009 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
10,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
10,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
June 30 |
8% Debentures A/c |
Dr. |
|
40,00,000 |
|
|
Premium on Redemption of Debenture A/c |
Dr. |
|
2,00,000 |
|
|
To Debentureholders’ A/c |
|
|
42,00,000 |
|
|
(Debenture due for redemption along with premium) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
20,00,000 |
|
|
To General Reserve A/c |
|
|
20,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Answer:
Books of Godrej Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
6,50,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
6,50,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
|
7% Debentures A/c |
Dr. |
|
20,00,000 |
|
|
To Debentureholders’ A/c |
|
|
20,00,000 |
|
|
(Amount due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
20,00,000 |
|
|
To Bank A/c |
|
|
20,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
10,00,000 |
|
|
To General Reserve A/c |
|
|
10,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Debenture Redemption Reserve |
= |
|
|
|
= |
Rs |
10,00,000 |
Less: D.R.R already made |
= |
Rs |
(3,50,000) |
Profit to be transferred to D.R.R |
= |
Rs |
6,50,000 |
Page No 9.26:
Question 11:
Books of Godrej Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
6,50,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
6,50,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
|
7% Debentures A/c |
Dr. |
|
20,00,000 |
|
|
To Debentureholders’ A/c |
|
|
20,00,000 |
|
|
(Amount due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
20,00,000 |
|
|
To Bank A/c |
|
|
20,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
10,00,000 |
|
|
To General Reserve A/c |
|
|
10,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Debenture Redemption Reserve |
= |
|
|
|
= |
Rs |
10,00,000 |
Less: D.R.R already made |
= |
Rs |
(3,50,000) |
Profit to be transferred to D.R.R |
= |
Rs |
6,50,000 |
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2002 |
|
|
|
|
|
March 31 |
Bank A/c |
Dr. |
|
21,00,000 |
|
|
To 8% Debenture Application A/c |
|
|
21,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
8% Debenture Application A/c |
Dr. |
|
21,00,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
1,68,000 |
|
|
To 8% Debenture A/c |
|
|
21,00,000 |
|
|
To Premium on Redemption A/c |
|
|
1,68,000 |
|
|
(21,00,000 8% Debentures of Rs 10 each issued with the term repayable at 8% Premium) |
|
|
|
|
|
|
|
|
|
|
2007 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
3,50,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
3,50,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
3,50,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
3,50,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2009 |
|
|
|
|
|
Mach 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
3,50,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
3,50,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2009 |
|
|
|
|
|
June 30 |
8% Debenture A/c |
Dr. |
|
21,00,000 |
|
|
Premium on Redemption Reserve A/c |
Dr. |
|
1,68,000 |
|
|
To Debentureholders’ A/c |
|
|
22,68,000 |
|
|
(Debenture due for redemption along with premium) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
22,68,000 |
|
|
To Bank A/c |
|
|
22,68,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
10,50,000 |
|
|
To General Reserve A/c |
|
|
10,50,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Page No 9.26:
Question 12:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2002 |
|
|
|
|
|
March 31 |
Bank A/c |
Dr. |
|
21,00,000 |
|
|
To 8% Debenture Application A/c |
|
|
21,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
8% Debenture Application A/c |
Dr. |
|
21,00,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
1,68,000 |
|
|
To 8% Debenture A/c |
|
|
21,00,000 |
|
|
To Premium on Redemption A/c |
|
|
1,68,000 |
|
|
(21,00,000 8% Debentures of Rs 10 each issued with the term repayable at 8% Premium) |
|
|
|
|
|
|
|
|
|
|
2007 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
3,50,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
3,50,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
3,50,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
3,50,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2009 |
|
|
|
|
|
Mach 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
3,50,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
3,50,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2009 |
|
|
|
|
|
June 30 |
8% Debenture A/c |
Dr. |
|
21,00,000 |
|
|
Premium on Redemption Reserve A/c |
Dr. |
|
1,68,000 |
|
|
To Debentureholders’ A/c |
|
|
22,68,000 |
|
|
(Debenture due for redemption along with premium) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
22,68,000 |
|
|
To Bank A/c |
|
|
22,68,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
10,50,000 |
|
|
To General Reserve A/c |
|
|
10,50,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Answer:
Books of Footfall Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
10,00,000 |
|
|
To Debenture Application A/c |
|
|
10,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
10,00,000 |
|
|
Loss on Issue of Debentures A/c |
|
50,000 |
|
|
|
To Debentures A/c |
|
|
10,00,000 |
|
|
To Premium on Redemption A/c |
|
|
50,000 |
|
|
(10,000 Debentures of Rs 100 each issued with term redeemable at 5% premium) |
|
|
|
|
|
|
|
|
|
|
|
Profit and Loss A/c |
Dr. |
|
5,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
5,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Debentures A/c |
Dr. |
|
10,00,000 |
|
|
Premium on Redemption A/c |
Dr. |
|
50,000 |
|
|
To Debentureholders’ A/c |
|
|
10,50,000 |
|
|
(Debentures due for redemption along with premium) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
10,50,000 |
|
|
To Bank A/c |
|
|
10,50,000 |
|
|
(Amount paid to debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
5,00,000 |
|
|
To General Reserve A/c |
|
|
5,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Page No 9.26:
Question 13:
Books of Footfall Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
10,00,000 |
|
|
To Debenture Application A/c |
|
|
10,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
10,00,000 |
|
|
Loss on Issue of Debentures A/c |
|
50,000 |
|
|
|
To Debentures A/c |
|
|
10,00,000 |
|
|
To Premium on Redemption A/c |
|
|
50,000 |
|
|
(10,000 Debentures of Rs 100 each issued with term redeemable at 5% premium) |
|
|
|
|
|
|
|
|
|
|
|
Profit and Loss A/c |
Dr. |
|
5,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
5,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Debentures A/c |
Dr. |
|
10,00,000 |
|
|
Premium on Redemption A/c |
Dr. |
|
50,000 |
|
|
To Debentureholders’ A/c |
|
|
10,50,000 |
|
|
(Debentures due for redemption along with premium) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
10,50,000 |
|
|
To Bank A/c |
|
|
10,50,000 |
|
|
(Amount paid to debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
5,00,000 |
|
|
To General Reserve A/c |
|
|
5,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Answer:
Books of PQ Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
10,00,000 |
|
|
To Debenture Application A/c |
|
|
10,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
10,00,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
To Debentures A/c |
|
|
10,00,000 |
|
|
To Premium on Redemption A/c |
|
|
1,00,000 |
|
|
(10,000 Debenture of Rs 100 each issued with the term redeemable at 10% premium) |
|
|
|
|
|
|
|
|
|
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
5,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
5,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Debentures A/c |
Dr. |
|
10,00,000 |
|
|
Premium on Redemption of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
To Debentureholders’ A/c |
|
|
11,00,000 |
|
|
(Debenture along with premium on redemption due for redemption) |
|
|
|
|
|
|
|
11,00,000 |
|
|
|
Debentureholders’ A/c |
Dr. |
|
|
11,00,000 |
|
To Bank A/c |
|
|
|
|
|
(Amount paid to debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
5,00,000 |
|
|
To General Reserve A/c |
|
|
5,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Page No 9.26:
Question 14:
Books of PQ Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Bank A/c |
Dr. |
|
10,00,000 |
|
|
To Debenture Application A/c |
|
|
10,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
10,00,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
To Debentures A/c |
|
|
10,00,000 |
|
|
To Premium on Redemption A/c |
|
|
1,00,000 |
|
|
(10,000 Debenture of Rs 100 each issued with the term redeemable at 10% premium) |
|
|
|
|
|
|
|
|
|
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
5,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
5,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Debentures A/c |
Dr. |
|
10,00,000 |
|
|
Premium on Redemption of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
To Debentureholders’ A/c |
|
|
11,00,000 |
|
|
(Debenture along with premium on redemption due for redemption) |
|
|
|
|
|
|
|
11,00,000 |
|
|
|
Debentureholders’ A/c |
Dr. |
|
|
11,00,000 |
|
To Bank A/c |
|
|
|
|
|
(Amount paid to debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
5,00,000 |
|
|
To General Reserve A/c |
|
|
5,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Answer:
Books of JB Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2001 |
|
|
|
|
|
Jan.01 |
Bank A/c |
Dr. |
|
10,40,000 |
|
|
To 6% Debenture Application A/c |
|
|
10,40,000 |
|
|
(Debenture Application money received) |
|
|
|
|
|
|
|
|
|
|
Jan.01 |
6% Debenture Application A/c |
Dr. |
|
10,40,000 |
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
50,000 |
|
|
To 6% Debentures A/c |
|
|
10,00,000 |
|
|
To Securities Premium A/c |
|
|
40,000 |
|
|
To Premium on Redemption A/c |
|
|
50,000 |
|
|
(Debentures of Rs 10,00,000 issued at 4% Premium with the term redeemable at 5% Premium) |
|
|
|
|
|
|
|
|
|
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
5,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
5,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2002 |
|
|
|
|
|
Dec.31 |
6% Debentures A/c |
Dr. |
|
10,00,000 |
|
|
Premium on Redemption A/c |
Dr. |
|
50,000 |
|
|
To Debentureholders’ A/c |
|
|
10,50,000 |
|
|
(Debentures due for redemption along with the premium) |
|
|
|
|
|
|
|
|
|
|
Dec.31 |
Debentureholders’ A/c |
Dr. |
|
10,50,000 |
|
|
To Bank A/c |
|
|
10,50,000 |
|
|
(Amount paid to Debentureholders) |
|
|
|
|
|
|
|
|
|
|
Dec.31 |
Debenture Redemption Reserve A/c |
Dr. |
|
5,00,000 |
|
|
To General Reserve A/c |
|
|
5,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Note- Here, as nothing specific has been mentioned in the question regarding the source of redemption. Therefore, it has been assumed that the debentures are redeemed 50% out of profit and 50% out of capital. Hence, only 50% of the face-value of the debentures issued has been transferred to the DRR Account.
Page No 9.26:
Question 15:
Books of JB Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2001 |
|
|
|
|
|
Jan.01 |
Bank A/c |
Dr. |
|
10,40,000 |
|
|
To 6% Debenture Application A/c |
|
|
10,40,000 |
|
|
(Debenture Application money received) |
|
|
|
|
|
|
|
|
|
|
Jan.01 |
6% Debenture Application A/c |
Dr. |
|
10,40,000 |
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
50,000 |
|
|
To 6% Debentures A/c |
|
|
10,00,000 |
|
|
To Securities Premium A/c |
|
|
40,000 |
|
|
To Premium on Redemption A/c |
|
|
50,000 |
|
|
(Debentures of Rs 10,00,000 issued at 4% Premium with the term redeemable at 5% Premium) |
|
|
|
|
|
|
|
|
|
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
5,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
5,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2002 |
|
|
|
|
|
Dec.31 |
6% Debentures A/c |
Dr. |
|
10,00,000 |
|
|
Premium on Redemption A/c |
Dr. |
|
50,000 |
|
|
To Debentureholders’ A/c |
|
|
10,50,000 |
|
|
(Debentures due for redemption along with the premium) |
|
|
|
|
|
|
|
|
|
|
Dec.31 |
Debentureholders’ A/c |
Dr. |
|
10,50,000 |
|
|
To Bank A/c |
|
|
10,50,000 |
|
|
(Amount paid to Debentureholders) |
|
|
|
|
|
|
|
|
|
|
Dec.31 |
Debenture Redemption Reserve A/c |
Dr. |
|
5,00,000 |
|
|
To General Reserve A/c |
|
|
5,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Note- Here, as nothing specific has been mentioned in the question regarding the source of redemption. Therefore, it has been assumed that the debentures are redeemed 50% out of profit and 50% out of capital. Hence, only 50% of the face-value of the debentures issued has been transferred to the DRR Account.
Answer:
Books of Raja Ltd. |
||||||
Journal |
||||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
2006 |
|
|
|
|
|
|
Jan.01 |
Bank A/c |
Dr. |
|
5,00,000 |
|
|
|
To 10% Debenture Application A/c |
|
|
5,00,000 |
||
|
(Debenture application received) |
|
|
|
||
|
|
|
|
|
||
|
10% Debenture Application A/c |
Dr. |
|
5,00,000 |
|
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
25,000 |
|
|
|
To 10% Debentures A/c |
|
|
5,00,000 |
||
|
To Premium on Redemption A/c |
|
|
25,000 |
||
|
(5,000 10% Debentures of Rs 100 each issued with the term redeemable at 5% premium) |
|
|
|
||
|
|
|
|
|
||
|
Profit and Loss Appropriation A/c |
Dr. |
|
5,00,000 |
|
|
|
To Debenture Redemption Reserve A/c |
|
|
5,00,000 |
||
|
(Amount transferred to Debenture Redemption Reserve) |
|
|
|
||
|
|
|
|
|
||
2010 |
|
|
|
|
||
Dec.31 |
10% Debentures A/c |
Dr. |
|
5,00,000 |
|
|
|
Premium on Redemption A/c |
Dr. |
|
25,000 |
|
|
|
To Debentureholders’ A/c |
|
|
5,25,000 |
||
|
(Debenture due for redemption along with Premium on redemption) |
|
|
|
||
|
|
|
|
|
||
Dec.31 |
Debentureholders’ A/c |
Dr. |
|
5,25,000 |
|
|
|
To Bank A/c |
|
|
5,25,000 |
||
|
(Amount paid to Debentureholders) |
|
|
|
||
|
|
|
|
|
||
Dec.31 |
Debenture Redemption Reserve A/c |
Dr. |
|
5,00,000 |
|
|
|
To General Reserve A/c |
|
|
5,00,000 |
||
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
||
|
|
|
|
|
||
Note- Here, amount equal to 100% of the face-value of the debentures issued has been transferred to DRR, as it is mentioned in the question that the debentures are redeemed out of profits.
Page No 9.26:
Question 16:
Books of Raja Ltd. |
||||||
Journal |
||||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
2006 |
|
|
|
|
|
|
Jan.01 |
Bank A/c |
Dr. |
|
5,00,000 |
|
|
|
To 10% Debenture Application A/c |
|
|
5,00,000 |
||
|
(Debenture application received) |
|
|
|
||
|
|
|
|
|
||
|
10% Debenture Application A/c |
Dr. |
|
5,00,000 |
|
|
|
Loss on Issue of Debenture A/c |
Dr. |
|
25,000 |
|
|
|
To 10% Debentures A/c |
|
|
5,00,000 |
||
|
To Premium on Redemption A/c |
|
|
25,000 |
||
|
(5,000 10% Debentures of Rs 100 each issued with the term redeemable at 5% premium) |
|
|
|
||
|
|
|
|
|
||
|
Profit and Loss Appropriation A/c |
Dr. |
|
5,00,000 |
|
|
|
To Debenture Redemption Reserve A/c |
|
|
5,00,000 |
||
|
(Amount transferred to Debenture Redemption Reserve) |
|
|
|
||
|
|
|
|
|
||
2010 |
|
|
|
|
||
Dec.31 |
10% Debentures A/c |
Dr. |
|
5,00,000 |
|
|
|
Premium on Redemption A/c |
Dr. |
|
25,000 |
|
|
|
To Debentureholders’ A/c |
|
|
5,25,000 |
||
|
(Debenture due for redemption along with Premium on redemption) |
|
|
|
||
|
|
|
|
|
||
Dec.31 |
Debentureholders’ A/c |
Dr. |
|
5,25,000 |
|
|
|
To Bank A/c |
|
|
5,25,000 |
||
|
(Amount paid to Debentureholders) |
|
|
|
||
|
|
|
|
|
||
Dec.31 |
Debenture Redemption Reserve A/c |
Dr. |
|
5,00,000 |
|
|
|
To General Reserve A/c |
|
|
5,00,000 |
||
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
||
|
|
|
|
|
||
Note- Here, amount equal to 100% of the face-value of the debentures issued has been transferred to DRR, as it is mentioned in the question that the debentures are redeemed out of profits.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
2010 |
|
|
|
|
|
Mar 31 |
10% Debentures A/c |
Dr. |
|
15,00,000 |
|
|
To Debentureholders A/c |
|
|
|
15,00,000 |
|
(Being 10% Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders A/c |
Dr. |
|
15,00,000 |
|
|
To Bank A/c |
|
|
|
15,00,000 |
|
(Being amount paid) |
|
|
|
|
|
|
|
|
|
|
|
Statement of Profit and Loss |
Dr. |
|
2,50,000 |
|
|
To Debenture Redemption Reserve |
|
|
|
2,50,000 |
|
(Being DRR created) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page No 9.26:
Question 17:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
2010 |
|
|
|
|
|
Mar 31 |
10% Debentures A/c |
Dr. |
|
15,00,000 |
|
|
To Debentureholders A/c |
|
|
|
15,00,000 |
|
(Being 10% Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders A/c |
Dr. |
|
15,00,000 |
|
|
To Bank A/c |
|
|
|
15,00,000 |
|
(Being amount paid) |
|
|
|
|
|
|
|
|
|
|
|
Statement of Profit and Loss |
Dr. |
|
2,50,000 |
|
|
To Debenture Redemption Reserve |
|
|
|
2,50,000 |
|
(Being DRR created) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Answer:
Books of Rich Sugar Ltd. Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2006 |
|
|
|
|
|
April 01 |
Bank A/c |
Dr. |
|
20,00,000 |
|
|
To 8% Debenture Application A/c |
|
|
20,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
8% Debenture Application A/c |
Dr. |
|
20,00,000 |
|
|
To 8% Debentures A/c |
|
|
20,00,000 |
|
|
(Debenture application transferred to 8% Debentures account) |
|
|
|
|
|
|
|
|
|
|
2007 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
50,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
5,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
5,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
5,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
April 01 |
8% Debentures A/c |
Dr. |
|
5,00,000 |
|
|
To Debentureholders’A/c |
|
|
5,00,000 |
|
|
(Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
April 01 |
Debentureholders’ A/c |
Dr. |
|
5,00,000 |
|
|
To Bank A/c |
|
|
5,00,000 |
|
|
(Amount of debentures paid to debentureholders) |
|
|
|
|
2009 |
|
|
|
|
|
April 01 |
8% Debentures A/c |
Dr. |
|
5,00,000 |
|
|
To Debentureholders’ A/c |
|
|
5,00,000 |
|
|
(Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
5,00,000 |
|
|
To Bank A/c |
|
|
5,00,000 |
|
|
(Amount of debentures paid to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
|
|
|
April 01 |
8% Debentures A/c |
Dr. |
|
5,00,000 |
|
|
To Debentureholders’ A/c |
|
|
5,00,000 |
|
|
(Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
5,00,000 |
|
|
To Bank A/c |
|
|
5,00,000 |
|
|
(Amount of debentures paid to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
April 01 |
8% Debentures A/c |
Dr. |
|
5,00,000 |
|
|
To Debentureholders’ A/c |
|
|
5,00,000 |
|
|
(Debenture due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
5,00,000 |
|
|
To Bank A/c |
|
|
5,00,000 |
|
|
(Amount of debentures paid to debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
10,00,000 |
|
|
To General Reserve A/c |
|
|
10,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Page No 9.27:
Question 18:
Books of Rich Sugar Ltd. Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2006 |
|
|
|
|
|
April 01 |
Bank A/c |
Dr. |
|
20,00,000 |
|
|
To 8% Debenture Application A/c |
|
|
20,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
8% Debenture Application A/c |
Dr. |
|
20,00,000 |
|
|
To 8% Debentures A/c |
|
|
20,00,000 |
|
|
(Debenture application transferred to 8% Debentures account) |
|
|
|
|
|
|
|
|
|
|
2007 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
50,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
5,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
5,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
5,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
April 01 |
8% Debentures A/c |
Dr. |
|
5,00,000 |
|
|
To Debentureholders’A/c |
|
|
5,00,000 |
|
|
(Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
April 01 |
Debentureholders’ A/c |
Dr. |
|
5,00,000 |
|
|
To Bank A/c |
|
|
5,00,000 |
|
|
(Amount of debentures paid to debentureholders) |
|
|
|
|
2009 |
|
|
|
|
|
April 01 |
8% Debentures A/c |
Dr. |
|
5,00,000 |
|
|
To Debentureholders’ A/c |
|
|
5,00,000 |
|
|
(Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
5,00,000 |
|
|
To Bank A/c |
|
|
5,00,000 |
|
|
(Amount of debentures paid to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
|
|
|
April 01 |
8% Debentures A/c |
Dr. |
|
5,00,000 |
|
|
To Debentureholders’ A/c |
|
|
5,00,000 |
|
|
(Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
5,00,000 |
|
|
To Bank A/c |
|
|
5,00,000 |
|
|
(Amount of debentures paid to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
April 01 |
8% Debentures A/c |
Dr. |
|
5,00,000 |
|
|
To Debentureholders’ A/c |
|
|
5,00,000 |
|
|
(Debenture due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
5,00,000 |
|
|
To Bank A/c |
|
|
5,00,000 |
|
|
(Amount of debentures paid to debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve A/c |
Dr. |
|
10,00,000 |
|
|
To General Reserve A/c |
|
|
10,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Answer:
Books of Tata Power Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2009 |
|
|
|
|
|
July 01 |
Bank A/c |
Dr. |
|
40,00,000 |
|
|
To 7% Debenture Application A/c |
|
|
40,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
40,00,000 |
|
|
Loss on issue of Debentures A/c |
Dr. |
|
2,00,000 |
|
|
To 7% Debentures A/c |
|
|
40,00,000 |
|
|
To Premium on Redemption A/c |
|
|
2,00,000 |
|
|
(40,000 7% Debenture of Rs 100 each issued) |
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
10,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
10,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
4,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
4,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2012 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
6,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
6,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
March 31 |
7% Debenture A/c |
Dr. |
|
16,00,000 |
|
|
Premium on Redemption A/c |
Dr. |
|
80,000 |
|
|
To Debentureholders’ A/c |
|
|
16,80,000 |
|
|
(16,000 7% Debenture of Rs 100 each due for redemption along 5% Premium on redemption) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Debenture holders |
Dr. |
|
16,80,000 |
|
|
To Bank A/c |
|
|
16,80,000 |
|
|
(Amount paid to debenture holders) |
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
|
|
|
March 31 |
7% Debenture A/c |
Dr. |
|
16,00,000 |
|
|
Premium on Redemption of Debentures A/c |
Dr. |
|
80,000 |
|
|
To Debenture holders |
|
|
16,80,000 |
|
|
(16,000 7% Debentures of Rs 100 each due for redemption along with 5% premium on redemption) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Debentureholders’ A/c |
Dr. |
|
16,80,000 |
|
|
To Bank A/c |
|
|
16,80,000 |
|
|
(Amount paid to debenture holders) |
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
|
|
March 31 |
7% Debenture A/c |
Dr. |
|
8,00,000 |
|
|
Premium on Redemption of Debentures A/c |
Dr. |
|
40,000 |
|
|
To Debenture holders |
|
|
8,40,000 |
|
|
(8,000 7% Debentures of Rs 100 each due for redemption along with 5% premium on redemption) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Debentureholders’ A/c |
Dr. |
|
8,40,000 |
|
|
To Bank A/c |
|
|
8,40,000 |
|
|
(Payment made to debenture holders) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Debenture Redemption Reserve A/c |
Dr. |
|
20,00,000 |
|
|
To General Reserve A/c |
|
|
20,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Amount for DRR
Amount to be transferred to Debenture Redemption Reserve on March 31, 2012
= 20,00,000 − 10,00,000 − 4,00,000 = Rs 6,00,000
Page No 9.27:
Question 19:
Books of Tata Power Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2009 |
|
|
|
|
|
July 01 |
Bank A/c |
Dr. |
|
40,00,000 |
|
|
To 7% Debenture Application A/c |
|
|
40,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
40,00,000 |
|
|
Loss on issue of Debentures A/c |
Dr. |
|
2,00,000 |
|
|
To 7% Debentures A/c |
|
|
40,00,000 |
|
|
To Premium on Redemption A/c |
|
|
2,00,000 |
|
|
(40,000 7% Debenture of Rs 100 each issued) |
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
10,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
10,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
4,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
4,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2012 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
6,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
6,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
March 31 |
7% Debenture A/c |
Dr. |
|
16,00,000 |
|
|
Premium on Redemption A/c |
Dr. |
|
80,000 |
|
|
To Debentureholders’ A/c |
|
|
16,80,000 |
|
|
(16,000 7% Debenture of Rs 100 each due for redemption along 5% Premium on redemption) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Debenture holders |
Dr. |
|
16,80,000 |
|
|
To Bank A/c |
|
|
16,80,000 |
|
|
(Amount paid to debenture holders) |
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
|
|
|
March 31 |
7% Debenture A/c |
Dr. |
|
16,00,000 |
|
|
Premium on Redemption of Debentures A/c |
Dr. |
|
80,000 |
|
|
To Debenture holders |
|
|
16,80,000 |
|
|
(16,000 7% Debentures of Rs 100 each due for redemption along with 5% premium on redemption) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Debentureholders’ A/c |
Dr. |
|
16,80,000 |
|
|
To Bank A/c |
|
|
16,80,000 |
|
|
(Amount paid to debenture holders) |
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
|
|
March 31 |
7% Debenture A/c |
Dr. |
|
8,00,000 |
|
|
Premium on Redemption of Debentures A/c |
Dr. |
|
40,000 |
|
|
To Debenture holders |
|
|
8,40,000 |
|
|
(8,000 7% Debentures of Rs 100 each due for redemption along with 5% premium on redemption) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Debentureholders’ A/c |
Dr. |
|
8,40,000 |
|
|
To Bank A/c |
|
|
8,40,000 |
|
|
(Payment made to debenture holders) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Debenture Redemption Reserve A/c |
Dr. |
|
20,00,000 |
|
|
To General Reserve A/c |
|
|
20,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Amount for DRR
Amount to be transferred to Debenture Redemption Reserve on March 31, 2012
= 20,00,000 − 10,00,000 − 4,00,000 = Rs 6,00,000
Answer:
Books of HP Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2005 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
8,00,00,000 |
|
|
To Debenture Redemption Reserve |
|
|
8,00,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
March 31 |
8% Debenture A/c |
Dr. |
|
10,00,00,000 |
|
|
To Debentureholders’ A/c |
|
|
10,00,00,000 |
|
|
(20,00,000 8% Debenture of Rs 50 each due for redemption) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Debentureholders’ A/c |
Dr. |
|
10,00,00,000 |
|
|
To Bank A/c |
|
|
10,00,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2006 |
|
|
|
|
|
March 31 |
8% Debentures A/c |
Dr. |
|
10,00,00,000 |
|
|
To Debentureholders’ A/c |
|
|
10,00,00,000 |
|
|
(20,00,000 8% Debenture of Rs 50 each due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
10,00,00,000 |
|
|
To Bank A/c |
|
|
10,00,00,000 |
|
|
(Payment made to debentur holders) |
|
|
|
|
|
|
|
|
|
|
2007 |
|
|
|
|
|
March 31 |
8% Debentures A/c |
Dr. |
|
10,00,00,000 |
|
|
To Debentureholders’ A/c |
|
|
10,00,00,000 |
|
|
(20,00,000 8% Debenture of Rs 50 each due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
|
10,00,00,000 |
|
|
|
To Bank A/c |
|
|
10,00,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
|
|
|
March 31 |
8% Debentures A/c |
Dr. |
|
10,00,00,000 |
|
|
To Debentureholders’ A/c |
|
|
10,00,00,000 |
|
|
(20,00,000 8% Debenture of Rs 50 each due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
10,00,00,000 |
|
|
To Bank A/c |
|
|
10,00,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2009 |
|
|
|
|
|
March 31 |
8% Debentures A/c |
Dr. |
|
10,00,00,000 |
|
|
To Debentureholders’ A/c |
|
|
10,00,00,000 |
|
|
(20,00,000 8% Debenture of Rs 50 each due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
10,00,00,000 |
|
|
To Bank A/c |
|
|
10,00,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
|
|
|
March 31 |
Debenture Redemption Reserve A/c |
Dr. |
|
25,00,00,000 |
|
|
To General Reserve A/c |
|
|
25,00,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Amount for D.R.R.
Debenture Redemption Reserve required |
= |
Rs |
25,00,00,000 |
Less: Debenture Redemption Reserve already created |
= |
Rs |
(17,00,00,000) |
D.R.R. to be created for redemption |
= |
Rs |
8,00,00,000 |
Page No 9.27:
Question 20:
Books of HP Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2005 |
|
|
|
|
|
March 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
8,00,00,000 |
|
|
To Debenture Redemption Reserve |
|
|
8,00,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
March 31 |
8% Debenture A/c |
Dr. |
|
10,00,00,000 |
|
|
To Debentureholders’ A/c |
|
|
10,00,00,000 |
|
|
(20,00,000 8% Debenture of Rs 50 each due for redemption) |
|
|
|
|
|
|
|
|
|
|
March 31 |
Debentureholders’ A/c |
Dr. |
|
10,00,00,000 |
|
|
To Bank A/c |
|
|
10,00,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2006 |
|
|
|
|
|
March 31 |
8% Debentures A/c |
Dr. |
|
10,00,00,000 |
|
|
To Debentureholders’ A/c |
|
|
10,00,00,000 |
|
|
(20,00,000 8% Debenture of Rs 50 each due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
10,00,00,000 |
|
|
To Bank A/c |
|
|
10,00,00,000 |
|
|
(Payment made to debentur holders) |
|
|
|
|
|
|
|
|
|
|
2007 |
|
|
|
|
|
March 31 |
8% Debentures A/c |
Dr. |
|
10,00,00,000 |
|
|
To Debentureholders’ A/c |
|
|
10,00,00,000 |
|
|
(20,00,000 8% Debenture of Rs 50 each due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
|
10,00,00,000 |
|
|
|
To Bank A/c |
|
|
10,00,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
|
|
|
March 31 |
8% Debentures A/c |
Dr. |
|
10,00,00,000 |
|
|
To Debentureholders’ A/c |
|
|
10,00,00,000 |
|
|
(20,00,000 8% Debenture of Rs 50 each due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
10,00,00,000 |
|
|
To Bank A/c |
|
|
10,00,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2009 |
|
|
|
|
|
March 31 |
8% Debentures A/c |
Dr. |
|
10,00,00,000 |
|
|
To Debentureholders’ A/c |
|
|
10,00,00,000 |
|
|
(20,00,000 8% Debenture of Rs 50 each due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
10,00,00,000 |
|
|
To Bank A/c |
|
|
10,00,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
|
|
|
March 31 |
Debenture Redemption Reserve A/c |
Dr. |
|
25,00,00,000 |
|
|
To General Reserve A/c |
|
|
25,00,00,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Amount for D.R.R.
Debenture Redemption Reserve required |
= |
Rs |
25,00,00,000 |
Less: Debenture Redemption Reserve already created |
= |
Rs |
(17,00,00,000) |
D.R.R. to be created for redemption |
= |
Rs |
8,00,00,000 |
Answer:
Shakti Enterprises Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2006 |
|
|
|
|
|
Oct. 01 |
Bank A/c |
Dr. |
|
35,00,000 |
|
|
To 6.5% Debenture Application A/c |
|
|
35,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
6.5% Debenture Application A/c |
Dr. |
|
35,00,000 |
|
|
To 6.5% Debentures A/c |
|
|
35,00,000 |
|
|
(Debenture application money transferred to debenture account) |
|
|
|
|
|
|
|
|
|
|
2007 |
|
|
|
|
|
Mar. 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
50,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
50,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
|
|
|
Mar. 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
4,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
4,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2009 |
|
|
|
|
|
Mar. 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
13,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
13,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
|
|
|
Mar. 31 |
6.5% Debentures A/c |
Dr. |
|
7,00,000 |
|
|
To Debentureholders’ A/c |
|
|
7,00,000 |
|
|
(7,000 6.5% Debentures of Rs 100 each due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
7,00,000 |
|
|
To Bank A/c |
|
|
7,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
Mar. 31 |
6.5% Debentures A/c |
Dr. |
|
7,00,000 |
|
|
To Debentureholders’ A/c |
|
|
7,00,000 |
|
|
(7,000, 6.5% Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
7,00,000 |
|
|
To Bank A/c |
|
|
7,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2012 |
|
|
|
|
|
Mar. 31 |
6.5% Debentures A/c |
Dr. |
|
7,00,000 |
|
|
To Debentureholders’ A/c |
|
|
7,00,000 |
|
|
(7,000 6.5% Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
7,00,000 |
|
|
To Bank A/c |
|
|
7,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
|
|
|
Mar. 31 |
6.5% Debentures A/c |
Dr. |
|
7,00,000 |
|
|
To Debentureholders’ A/c |
|
|
7,00,000 |
|
|
(7,000 6.5% Debentures due for debenture holders) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
7,00,000 |
|
|
To Bank A/c |
|
|
7,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
|
|
Mar. 31 |
6.5% Debentures A/c |
Dr. |
|
7,00,000 |
|
|
To Debentureholder’ A/c |
|
|
7,00,000 |
|
|
(7,000 6.5% Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
7,00,000 |
|
|
To Bank A/c |
|
|
7,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
|
|
Mar. 31 |
Debenture Redemption Reserve A/c |
Dr. |
|
17,50,000 |
|
|
To Genera Reserve A/c |
|
|
17,50,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Amount for D.R.R.
Debenture Redemption Reserve required |
= |
17,50,000 |
Less: Profit transferred to D.R.R in 2007 |
= |
(50,000) |
Less: Profit transferred to D.R.R in 2008 |
= |
(4,00,000) |
D.R.R to be created |
= |
13,00,000 |
Page No 9.27:
Question 21:
Shakti Enterprises Ltd. |
|||||
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2006 |
|
|
|
|
|
Oct. 01 |
Bank A/c |
Dr. |
|
35,00,000 |
|
|
To 6.5% Debenture Application A/c |
|
|
35,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
6.5% Debenture Application A/c |
Dr. |
|
35,00,000 |
|
|
To 6.5% Debentures A/c |
|
|
35,00,000 |
|
|
(Debenture application money transferred to debenture account) |
|
|
|
|
|
|
|
|
|
|
2007 |
|
|
|
|
|
Mar. 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
50,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
50,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2008 |
|
|
|
|
|
Mar. 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
4,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
4,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2009 |
|
|
|
|
|
Mar. 31 |
Profit and Loss Appropriation A/c |
Dr. |
|
13,00,000 |
|
|
To Debenture Redemption Reserve A/c |
|
|
13,00,000 |
|
|
(Profit transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
|
|
|
Mar. 31 |
6.5% Debentures A/c |
Dr. |
|
7,00,000 |
|
|
To Debentureholders’ A/c |
|
|
7,00,000 |
|
|
(7,000 6.5% Debentures of Rs 100 each due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
7,00,000 |
|
|
To Bank A/c |
|
|
7,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
Mar. 31 |
6.5% Debentures A/c |
Dr. |
|
7,00,000 |
|
|
To Debentureholders’ A/c |
|
|
7,00,000 |
|
|
(7,000, 6.5% Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
7,00,000 |
|
|
To Bank A/c |
|
|
7,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2012 |
|
|
|
|
|
Mar. 31 |
6.5% Debentures A/c |
Dr. |
|
7,00,000 |
|
|
To Debentureholders’ A/c |
|
|
7,00,000 |
|
|
(7,000 6.5% Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
7,00,000 |
|
|
To Bank A/c |
|
|
7,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
|
|
|
Mar. 31 |
6.5% Debentures A/c |
Dr. |
|
7,00,000 |
|
|
To Debentureholders’ A/c |
|
|
7,00,000 |
|
|
(7,000 6.5% Debentures due for debenture holders) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
7,00,000 |
|
|
To Bank A/c |
|
|
7,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
|
|
Mar. 31 |
6.5% Debentures A/c |
Dr. |
|
7,00,000 |
|
|
To Debentureholder’ A/c |
|
|
7,00,000 |
|
|
(7,000 6.5% Debentures due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
7,00,000 |
|
|
To Bank A/c |
|
|
7,00,000 |
|
|
(Payment made to debentureholders) |
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
|
|
|
Mar. 31 |
Debenture Redemption Reserve A/c |
Dr. |
|
17,50,000 |
|
|
To Genera Reserve A/c |
|
|
17,50,000 |
|
|
(Debenture Redemption Reserve transferred to General Reserve) |
|
|
|
|
|
|
|
|
|
Working Note:
Amount for D.R.R.
Debenture Redemption Reserve required |
= |
17,50,000 |
Less: Profit transferred to D.R.R in 2007 |
= |
(50,000) |
Less: Profit transferred to D.R.R in 2008 |
= |
(4,00,000) |
D.R.R to be created |
= |
13,00,000 |
Answer:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Own Debentures A/c (1000×92) |
Dr. |
|
92,000 |
|
|
|
To Bank A/c |
|
|
|
92,000 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debentures A/c |
Dr. |
|
1,00,000 |
|
|
|
To Own Debentures A/c |
|
|
|
92,000 |
|
|
To Profit on cancellation of own debentures A/c |
|
|
|
8,000 |
|
|
(Own debentures cancelled) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on cancellation of own debentures A/c |
Dr. |
|
8,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
8,000 |
|
|
(Profit on cancellation transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Page No 9.27:
Question 22:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Own Debentures A/c (1000×92) |
Dr. |
|
92,000 |
|
|
|
To Bank A/c |
|
|
|
92,000 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debentures A/c |
Dr. |
|
1,00,000 |
|
|
|
To Own Debentures A/c |
|
|
|
92,000 |
|
|
To Profit on cancellation of own debentures A/c |
|
|
|
8,000 |
|
|
(Own debentures cancelled) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on cancellation of own debentures A/c |
Dr. |
|
8,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
8,000 |
|
|
(Profit on cancellation transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
2010 |
|
|
|
|
|
|
30th June |
Debentures Interest A/c |
Dr. |
|
6,000 |
|
|
|
To Bank A/c |
|
|
|
6,000 |
|
|
(Interest on debentures paid) |
|
|
|
|
|
|
|
|
|
|
|
|
1st July |
Own Debentures A/c (300×93) |
Dr. |
|
27,900 |
|
|
|
To Bank A/c |
|
|
|
27,900 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Debentures A/c |
Dr. |
|
30,000 |
|
|
|
To Own Debentures A/c |
|
|
|
27,900 |
|
|
To Profit on cancellation of own debentures A/c |
|
|
|
2,100 |
|
|
(Own debentures cancelled) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on cancellation of own debentures A/c |
Dr. |
|
2,100 |
|
|
|
To Capital Reserve A/c |
|
|
|
2,100 |
|
|
(Profit on cancellation transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Page No 9.27:
Question 23:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
2010 |
|
|
|
|
|
|
30th June |
Debentures Interest A/c |
Dr. |
|
6,000 |
|
|
|
To Bank A/c |
|
|
|
6,000 |
|
|
(Interest on debentures paid) |
|
|
|
|
|
|
|
|
|
|
|
|
1st July |
Own Debentures A/c (300×93) |
Dr. |
|
27,900 |
|
|
|
To Bank A/c |
|
|
|
27,900 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
12% Debentures A/c |
Dr. |
|
30,000 |
|
|
|
To Own Debentures A/c |
|
|
|
27,900 |
|
|
To Profit on cancellation of own debentures A/c |
|
|
|
2,100 |
|
|
(Own debentures cancelled) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on cancellation of own debentures A/c |
Dr. |
|
2,100 |
|
|
|
To Capital Reserve A/c |
|
|
|
2,100 |
|
|
(Profit on cancellation transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Own Debentures A/c (250×98) |
Dr. |
|
24,500 |
|
|
|
To Bank A/c |
|
|
|
24,500 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Own Debentures A/c |
Dr. |
|
50 |
|
|
|
To Bank A/c |
|
|
|
50 |
|
|
(Expenses for purchase of own debentures paid) |
|
|
|
|
|
|
|
|
|
|
|
|
|
15% Debentures A/c |
Dr. |
|
25,000 |
|
|
|
To Own Debentures A/c (24500+50) |
|
|
|
24,550 |
|
|
To Profit on cancellation of own debentures A/c |
|
|
|
450 |
|
|
(Own debentures cancelled) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on cancellation of own debentures A/c |
Dr. |
|
450 |
|
|
|
To Capital Reserve A/c |
|
|
|
450 |
|
|
(Profit on cancellation transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Page No 9.27:
Question 24:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Own Debentures A/c (250×98) |
Dr. |
|
24,500 |
|
|
|
To Bank A/c |
|
|
|
24,500 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Own Debentures A/c |
Dr. |
|
50 |
|
|
|
To Bank A/c |
|
|
|
50 |
|
|
(Expenses for purchase of own debentures paid) |
|
|
|
|
|
|
|
|
|
|
|
|
|
15% Debentures A/c |
Dr. |
|
25,000 |
|
|
|
To Own Debentures A/c (24500+50) |
|
|
|
24,550 |
|
|
To Profit on cancellation of own debentures A/c |
|
|
|
450 |
|
|
(Own debentures cancelled) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on cancellation of own debentures A/c |
Dr. |
|
450 |
|
|
|
To Capital Reserve A/c |
|
|
|
450 |
|
|
(Profit on cancellation transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Own Debentures A/c (8,000×160) |
Dr. |
|
12,80,000 |
|
|
|
To Bank A/c |
|
|
|
12,80,000 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
7% Debentures A/c |
Dr. |
|
16,00,000 |
|
|
|
To Own Debentures A/c |
|
|
|
12,80,000 |
|
|
To Profit on cancellation of own debentures A/c |
|
|
|
3,20,000 |
|
|
(Own debentures cancelled) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on cancellation of own debentures A/c |
Dr. |
|
3,20,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
3,20,000 |
|
|
(Profit on cancellation transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Page No 9.27:
Question 25:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Own Debentures A/c (8,000×160) |
Dr. |
|
12,80,000 |
|
|
|
To Bank A/c |
|
|
|
12,80,000 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
7% Debentures A/c |
Dr. |
|
16,00,000 |
|
|
|
To Own Debentures A/c |
|
|
|
12,80,000 |
|
|
To Profit on cancellation of own debentures A/c |
|
|
|
3,20,000 |
|
|
(Own debentures cancelled) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on cancellation of own debentures A/c |
Dr. |
|
3,20,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
3,20,000 |
|
|
(Profit on cancellation transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Investment in Own Debentures A/c (1,00,000×10) |
Dr. |
|
10,00,000 |
|
|
|
To Bank A/c |
|
|
|
10,00,000 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Since no information is provided regarding cancellation, the entry for cancellation of own debentures will not be recorded.
Page No 9.27:
Question 26:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Investment in Own Debentures A/c (1,00,000×10) |
Dr. |
|
10,00,000 |
|
|
|
To Bank A/c |
|
|
|
10,00,000 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Since no information is provided regarding cancellation, the entry for cancellation of own debentures will not be recorded.
Answer:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
30th June |
Debentures Interest A/c |
Dr. |
|
6,000 |
|
|
|
To Bank A/c |
|
|
|
6,000 |
|
|
(Interest on debentures paid) |
|
|
|
|
|
|
|
|
|
|
|
|
1st July |
Investment in Own Debentures A/c (400×93) |
Dr. |
|
37,200 |
|
|
|
To Bank A/c |
|
|
|
37,200 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (400×99) |
Dr. |
|
39,600 |
|
|
|
To Investment in Own Debentures A/c |
|
|
|
37,200 |
|
|
To Profit on Sale of own debentures A/c |
|
|
|
2,400 |
|
|
(Own debentures resold) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on Sale of own debentures A/c |
Dr. |
|
2,400 |
|
|
|
To Capital Reserve A/c |
|
|
|
2,400 |
|
|
(Profit on sale transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Page No 9.27:
Question 27:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
30th June |
Debentures Interest A/c |
Dr. |
|
6,000 |
|
|
|
To Bank A/c |
|
|
|
6,000 |
|
|
(Interest on debentures paid) |
|
|
|
|
|
|
|
|
|
|
|
|
1st July |
Investment in Own Debentures A/c (400×93) |
Dr. |
|
37,200 |
|
|
|
To Bank A/c |
|
|
|
37,200 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (400×99) |
Dr. |
|
39,600 |
|
|
|
To Investment in Own Debentures A/c |
|
|
|
37,200 |
|
|
To Profit on Sale of own debentures A/c |
|
|
|
2,400 |
|
|
(Own debentures resold) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on Sale of own debentures A/c |
Dr. |
|
2,400 |
|
|
|
To Capital Reserve A/c |
|
|
|
2,400 |
|
|
(Profit on sale transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Bank A/c (1,80,000×500) |
Dr. |
|
9,00,00,000 |
|
|
|
To Debenture Application A/c |
|
|
|
9,00,00,000 |
|
|
(Amount received on issue of 1,80,000 debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
9,00,00,000 |
|
|
|
To 7½ Debentures A/c |
|
|
|
9,00,00,000 |
|
|
(Allotment of 1,80,000 debentures done) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in Own Debentures A/c (80,000×485) |
Dr. |
|
3,88,00,000 |
|
|
|
To Bank A/c |
|
|
|
3,88,00,000 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (80,000×510) |
Dr. |
|
4,08,00,000 |
|
|
|
To Investment in Own Debentures A/c |
|
|
|
3,88,00,000 |
|
|
To Profit on Sale of own debentures A/c |
|
|
|
20,00,000 |
|
|
(Own debentures resold) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on Sale of own debentures A/c |
Dr. |
|
20,00,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
20,00,000 |
|
|
(Profit on sale transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Page No 9.28:
Question 28:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Bank A/c (1,80,000×500) |
Dr. |
|
9,00,00,000 |
|
|
|
To Debenture Application A/c |
|
|
|
9,00,00,000 |
|
|
(Amount received on issue of 1,80,000 debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
9,00,00,000 |
|
|
|
To 7½ Debentures A/c |
|
|
|
9,00,00,000 |
|
|
(Allotment of 1,80,000 debentures done) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in Own Debentures A/c (80,000×485) |
Dr. |
|
3,88,00,000 |
|
|
|
To Bank A/c |
|
|
|
3,88,00,000 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c (80,000×510) |
Dr. |
|
4,08,00,000 |
|
|
|
To Investment in Own Debentures A/c |
|
|
|
3,88,00,000 |
|
|
To Profit on Sale of own debentures A/c |
|
|
|
20,00,000 |
|
|
(Own debentures resold) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on Sale of own debentures A/c |
Dr. |
|
20,00,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
20,00,000 |
|
|
(Profit on sale transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
2011 |
|
|
|
|
|
|
Jan 1 |
Bank A/c (40,000×100) |
Dr. |
|
40,00,000 |
|
|
|
To Debenture Application A/c |
|
|
|
40,00,000 |
|
|
(Amount received on issue of 40,000 debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
40,00,000 |
|
|
|
To 9% Debentures A/c |
|
|
|
40,00,000 |
|
|
(Allotment of 40,000 debentures made) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Profit and Loss A/c |
Dr. |
|
12,000 |
|
|
|
To Expenses on Issue of Debentures A/c |
|
|
|
12,000 |
|
|
(Expenses on issue of debentures written off) |
|
|
|
|
|
2012 |
|
|
|
|
|
|
Dec. 31 |
Debenture’s Interest A/c |
Dr. |
|
3,60,000 |
|
|
|
To Bank A/c |
|
|
|
3,60,000 |
|
|
(Debentures Interest paid for the year) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Own Debentures A/c (2,000×98) |
Dr. |
|
1,96,000 |
|
|
|
To Bank A/c |
|
|
|
1,96,000 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Own Debentures A/c |
Dr. |
|
400 |
|
|
|
To Bank A/c |
|
|
|
400 |
|
|
(Expenses on issue of own debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
9%Debentures A/c |
Dr. |
|
2,00,000 |
|
|
|
To Own Debentures A/c |
|
|
|
1,96,400 |
|
|
To Profit on Cancellation of own debentures A/c |
|
|
|
3,600 |
|
|
(Own debentures cancelled) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on Cancellation of own debentures A/c |
Dr. |
|
3,600 |
|
|
|
To Capital Reserve A/c |
|
|
|
3,600 |
|
|
(Profit on cancellation transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Note: It has been assumed that the company has an adequate amount in Debenture Redemption Reserve; hence, no entry has been passed for the same.
Page No 9.28:
Question 29:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
2011 |
|
|
|
|
|
|
Jan 1 |
Bank A/c (40,000×100) |
Dr. |
|
40,00,000 |
|
|
|
To Debenture Application A/c |
|
|
|
40,00,000 |
|
|
(Amount received on issue of 40,000 debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
40,00,000 |
|
|
|
To 9% Debentures A/c |
|
|
|
40,00,000 |
|
|
(Allotment of 40,000 debentures made) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Profit and Loss A/c |
Dr. |
|
12,000 |
|
|
|
To Expenses on Issue of Debentures A/c |
|
|
|
12,000 |
|
|
(Expenses on issue of debentures written off) |
|
|
|
|
|
2012 |
|
|
|
|
|
|
Dec. 31 |
Debenture’s Interest A/c |
Dr. |
|
3,60,000 |
|
|
|
To Bank A/c |
|
|
|
3,60,000 |
|
|
(Debentures Interest paid for the year) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Own Debentures A/c (2,000×98) |
Dr. |
|
1,96,000 |
|
|
|
To Bank A/c |
|
|
|
1,96,000 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Own Debentures A/c |
Dr. |
|
400 |
|
|
|
To Bank A/c |
|
|
|
400 |
|
|
(Expenses on issue of own debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
9%Debentures A/c |
Dr. |
|
2,00,000 |
|
|
|
To Own Debentures A/c |
|
|
|
1,96,400 |
|
|
To Profit on Cancellation of own debentures A/c |
|
|
|
3,600 |
|
|
(Own debentures cancelled) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on Cancellation of own debentures A/c |
Dr. |
|
3,600 |
|
|
|
To Capital Reserve A/c |
|
|
|
3,600 |
|
|
(Profit on cancellation transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Note: It has been assumed that the company has an adequate amount in Debenture Redemption Reserve; hence, no entry has been passed for the same.
Answer:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
2005-06 |
Bank A/c (5,000×100) |
Dr. |
|
5,00,000 |
|
|
|
To Debenture Application A/c |
|
|
|
5,00,000 |
|
|
(Amount received on issue of 5,000 debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
5,00,000 |
|
|
|
To 10% Debentures A/c |
|
|
|
5,00,000 |
|
|
(Allotment of 5,000 debentures done) |
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
|
|
|
|
Apr. 01 |
Own Debentures A/c |
Dr. |
|
48,000 |
|
|
|
To Bank A/c |
|
|
|
48,000 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30 |
Debenture’s Interest A/c |
Dr. |
|
25,000 |
|
|
|
To Debenture holder’s A/c |
|
|
|
22,500 |
|
|
To Investment in Own Debentures A/c |
|
|
|
2,500 |
|
|
(Interest due on debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture holder’s A/c |
Dr. |
|
22,500 |
|
|
|
To Bank A/c |
|
|
|
22,500 |
|
|
(Payment of Interest on debentures) |
|
|
|
|
|
2014 |
|
|
|
|
|
|
Mar. 31 |
Debenture’s Interest A/c |
Dr. |
|
25,000 |
|
|
|
To Debenture holder’s A/c |
|
|
|
22,500 |
|
|
To Investment in Own Debentures A/c |
|
|
|
2,500 |
|
|
(Interest due on debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture holder’s A/c |
Dr. |
|
22,500 |
|
|
|
To Bank A/c |
|
|
|
22,500 |
|
|
(Payment of Interest on debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
10%Debentures A/c |
Dr. |
|
50,000 |
|
|
|
To Own Debentures A/c |
|
|
|
48,000 |
|
|
To Profit on Cancellation of own debentures A/c |
|
|
|
2,000 |
|
|
(Own debentures cancelled) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on Cancellation of own debentures A/c |
Dr. |
|
2,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
2,000 |
|
|
(Profit on cancellation transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Note: Debenture Interest Account is shown in the Statement of Profit and Loss under the head ‘Finance Costs’ and the ‘Interest on Own Debentures’ is shown under the head ‘Other Income’ in the statement of Profit and Loss.
Page No 9.28:
Question 30:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
2005-06 |
Bank A/c (5,000×100) |
Dr. |
|
5,00,000 |
|
|
|
To Debenture Application A/c |
|
|
|
5,00,000 |
|
|
(Amount received on issue of 5,000 debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c |
Dr. |
|
5,00,000 |
|
|
|
To 10% Debentures A/c |
|
|
|
5,00,000 |
|
|
(Allotment of 5,000 debentures done) |
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
|
|
|
|
Apr. 01 |
Own Debentures A/c |
Dr. |
|
48,000 |
|
|
|
To Bank A/c |
|
|
|
48,000 |
|
|
(Own debentures purchased) |
|
|
|
|
|
|
|
|
|
|
|
|
Sept 30 |
Debenture’s Interest A/c |
Dr. |
|
25,000 |
|
|
|
To Debenture holder’s A/c |
|
|
|
22,500 |
|
|
To Investment in Own Debentures A/c |
|
|
|
2,500 |
|
|
(Interest due on debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture holder’s A/c |
Dr. |
|
22,500 |
|
|
|
To Bank A/c |
|
|
|
22,500 |
|
|
(Payment of Interest on debentures) |
|
|
|
|
|
2014 |
|
|
|
|
|
|
Mar. 31 |
Debenture’s Interest A/c |
Dr. |
|
25,000 |
|
|
|
To Debenture holder’s A/c |
|
|
|
22,500 |
|
|
To Investment in Own Debentures A/c |
|
|
|
2,500 |
|
|
(Interest due on debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture holder’s A/c |
Dr. |
|
22,500 |
|
|
|
To Bank A/c |
|
|
|
22,500 |
|
|
(Payment of Interest on debentures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
10%Debentures A/c |
Dr. |
|
50,000 |
|
|
|
To Own Debentures A/c |
|
|
|
48,000 |
|
|
To Profit on Cancellation of own debentures A/c |
|
|
|
2,000 |
|
|
(Own debentures cancelled) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on Cancellation of own debentures A/c |
Dr. |
|
2,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
2,000 |
|
|
(Profit on cancellation transferred to capital reserve) |
|
|
|
|
|
|
|
|
|
|
|
Note: Debenture Interest Account is shown in the Statement of Profit and Loss under the head ‘Finance Costs’ and the ‘Interest on Own Debentures’ is shown under the head ‘Other Income’ in the statement of Profit and Loss.
Answer:
Case (i)
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
At the time of Issue |
|
|
|
|
|
Bank A/c |
Dr. |
|
10,00,000 |
|
|
To 12% Debenture Application A/c |
|
|
10,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
12% Debenture Application A/c |
Dr. |
|
10,00,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
To 12% Debentures A/c |
|
|
10,00,000 |
|
|
To Premium on Redemption of Debenture A/c |
|
|
1,00,000 |
|
|
(20,000 12% Debentures of Rs 50 each Issued at par repayable at 10% premium) |
|
|
|
|
|
|
|
|
|
|
|
At the time of Redemption |
|
|
|
|
|
12% Debenture A/c |
Dr. |
|
10,00,000 |
|
|
Premium on Redemption A/c |
Dr. |
|
1,00,000 |
|
|
To Debentureholders’ A/c |
|
|
11,00,000 |
|
|
(2,000 12% Debentures of Rs 50 each repayable at 10% premium due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debenture holders A/c |
Dr. |
|
11,00,000 |
|
|
To Bank A/c |
|
|
11,00,000 |
|
|
(Payment made to debenture holders) |
|
|
|
|
|
|
|
|
|
Case (ii)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
At the time of Issue |
|
|
|
|
|
Bank A/c |
Dr. |
|
11,00,000 |
|
|
To 12% Debenture Application A/c |
|
|
11,00,000 |
|
|
(Debenture application money received) |
|
|
|
|
|
|
|
|
|
|
|
12% Debenture Application A/c |
Dr. |
|
11,00,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
2,00,000 |
|
|
To 12% Debentures A/c |
|
|
10,00,000 |
|
|
To Securities Premium A/c |
|
|
1,00,000 |
|
|
To Premium on Redemption A/c |
|
|
2,00,000 |
|
|
(20,000 12% Debentures of Rs 50 each issued at 10% Premium, repayable at 20% Premium) |
|
|
|
|
|
|
|
|
|
|
|
At the time of Redemption |
|
|
|
|
|
12% Debenture A/c |
Dr. |
|
10,00,000 |
|
|
Premium on Redemption A/c |
Dr. |
|
2,00,000 |
|
|
To Debentureholders’ A/c |
|
|
12,00,000 |
|
|
(2,000 12% Debentures of Rs 50 each due for redemption at a premium of 20%) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
12,00,000 |
|
|
To Bank A/c |
|
|
12,00,000 |
|
|
(Amount paid to debentureholders) |
|
|
|
|
|
|
|
|
|
Case (iii)
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
At the time of Issue |
|
|
|
|
|
Bank A/c |
Dr. |
|
10,00,000 |
|
|
To 12% Debenture Application A/c |
Dr. |
|
|
10,00,000 |
|
(Debenture application money received for 20,000 Debenture Rs 50 each) |
|
|
|
|
|
|
|
|
|
|
|
12% Debenture Application A/c |
Dr. |
|
5,00,000 |
|
|
Loss on Issue of Debentures A/c |
Dr. |
|
1,00,000 |
|
|
To 12% Debentures A/c |
|
|
5,00,000 |
|
|
To Premium on Redemption A/c |
|
|
1,00,000 |
|
|
(10,000 12% Debentures of Rs 50 each issued at par with term redeemable at premium) |
|
|
|
|
|
|
|
|
|
|
|
12% Debenture Application A/c |
Dr. |
|
5,00,000 |
|
|
To 12% Debentures A/c |
|
|
5,00,000 |
|
|
(10,000 12% Debenture of Rs 50 each issued at par) |
|
|
|
|
|
|
|
|
|
|
|
At the time of Redemption |
|
|
|
|
|
12% Debentures A/c |
Dr. |
|
5,00,000 |
|
|
To Debentureholders’ A/c |
|
|
5,00,000 |
|
|
(10,000 Debentures of Rs 50 each due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
12% Debentureholders; A/c |
Dr. |
|
5,00,000 |
|
|
To Bank A/c |
|
|
5,00,000 |
|
|
(Payment made in cash to 50% debentureholders) |
|
|
|
|
|
|
|
|
|
|
|
12% Debentures A/c |
Dr. |
|
5,00,000 |
|
|
Premium on Redemption A/c |
Dr. |
|
1,00,000 |
|
|
To Debentureholders’ A/c |
|
|
6,00,000 |
|
|
(10,000 12% Debentures of Rs 100 each due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
Debentureholders’ A/c |
Dr. |
|
6,00,000 |
|
|
To Debentures A/c |
|
|
6,00,000 |
|
|
(New Debenture issued to the holders of 10,000 12% Debentures) |
|
|
|
|
|
|
|
|
|
View NCERT Solutions for all chapters of Class 15