BG ltd. issued 2,000 , 12% debentures of rs100 each on 1st april 2012 the issue was fully suscribed interest on debentures is payable half yearly on 30 sep. nd 31st march nd the tax deducted at source is 10% pass journal entries related to debenture interest and transfer of interst on debentures of the year to statement of PL ..

Dear Student,

The solution to your query is provided below.
Journal
Date Particulars L.F. Debit
Amount
(Rs)
Credit
Amount
(Rs)
September Debenture Interest A/c 2,00,000 × 12100 × 612 Dr.   12,000  
30, 2012 To Income Tax Payable A/c 12,000 × 10100       1,200
  To Debentureholders’ A/c       10,800
  (Amount of Interest due for 6 months and tax deducted at source)        
           
September Debentureholders’ A/c Dr.   10,800  
30, 2012 To Bank A/c       10,800
  (Interest paid to the debentureholders)        
           
September Income Tax Payable A/c Dr.   1,200  
30, 2012 To Bank A/c       1,200
  (Payment of tax on interest on debentures)        
           
March Debenture Interest A/c 2,00,000 × 12100 × 612 Dr.   12,000  
31, 2013 To Income Tax Payable A/c 12,000 × 10100       1,200
  To Debentureholders’ A/c       10,800
  (Amount of Interest due for 6 months and tax deducted at source)        
           
March Debentureholders’ A/c Dr.   10,800  
31, 2013 To Bank A/c       10,800
  (Interest paid to the debentureholders)        
           
March Income Tax Payable A/c Dr.   1,200  
31, 2012 To Bank A/c       1,200
  (Payment of tax on interest on debentures)        
           
March Statement of Profit and Loss Dr.   24,000  
31, 2013  To Debenture Interest A/c       24,000
  (Interest or debentures transferred to Profit and Loss Account)        
         

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