Book Keeping & Accountancy Solutions Solutions for Class 12 Commerce Accountancy Chapter 11 Company Accounts Part II (Accounting For Debentures) are provided here with simple step-by-step explanations. These solutions for Company Accounts Part II (Accounting For Debentures) are extremely popular among class 12 Commerce students for Accountancy Company Accounts Part II (Accounting For Debentures) Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Book Keeping & Accountancy Solutions Book of class 12 Commerce Accountancy Chapter 11 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Book Keeping & Accountancy Solutions Solutions. All Book Keeping & Accountancy Solutions Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.
Page No 372:
Question 1.A1:
Objective type questions.
Answer in are sentence only.
What is meant by debenture?
Answer:
Debentures are debt funds issued in the form of certificate under the common seal of a company. The certificate contains the details about rate of interest for the specified period, repayment of principle and the schedule of interest payments.
Page No 372:
Question 1.A2:
Objective type questions.
Answer in are sentence only.
What do you mean by Bearer Debenture?
Answer:
Debentures that are transferable by mere delivery are known as bearer debentures. The name and address of the holder of a bearer debenture is not registered with the company. Interest on such debentures is paid only to those holders who produce interest coupons attached with these debentures.
Page No 372:
Question 1.A3:
Objective type questions.
Answer in are sentence only.
What is meant by ‘Issue’ of debentures for consideration other than cash?
Answer:
Debentures can be issued for cash or for consideration other than cash. When debentures are issued to the vendors for purchase of assets, it is known as ‘issue of debentures for consideration other than cash’. In other words, vendors are issued debentures for the amount due rather than making payment in cash. Such an issue can be made at a discount, at par or at a premium.
Page No 372:
Question 1.A4:
Objective type questions.
Answer in are sentence only.
What is meant by ‘Issue of debenture at discount and redeemable at premium’?
Answer:
When debentures are issued at a price below their face value, it is known as ‘issue of debentures at discount’. ‘Redemption of debentures at premium’ implies that such debentures will be paid off a redemption price that is more than its face value. For example, a debenture with face value of Rs 10, issued at Rs 9 (issued at discount of Re 1) and redeemable at Rs 12 (redeemed at a premium of Rs 2).
Page No 372:
Question 1.A5:
Objective type questions.
Answer in are sentence only.
What is a ‘Convertible Debenture’?
Answer:
Those debentures that have an option/right to get converted into shares (either preference share or equity share) after a specified period are known as convertible debentures.
Page No 372:
Question 1.A6:
Objective type questions.
Answer in are sentence only.
What is meant by ‘Mortgaged Debenture’?
Answer:
The debentures that are secured by creating a charge on the assets of a company are known as mortgage debentures. Therefore, they are also known as secured debentures. The charge on the assets can be fixed, i.e. on some particular asset of the company or floating, i.e. on all the assets of the company in general.
Page No 372:
Question 1.A7:
Objective type questions.
Answer in are sentence only.
What is meant by redemption of Debentures?
Answer:
Repayment of the principal amount of debentures is known as redemption of debentures. It can be at a premium, discount or par. The conditions about redemption are stipulated at the time of issue of debentures. That is, whether redemption is to be made at a price above its face value (at a premium), or at par, i.e. at face value, or at a price below the face value (i.e. redemption at discount) is decided at the time of issue of the debentures.
Page No 372:
Question 1.A8:
Objective type questions.
Answer in are sentence only.
What is meant by ‘Premium on Redemption of debentures?
Answer:
When the debentures are repaid by paying a price that is more than their face value it is known as ‘redemption of debentures at a premium’.
Page No 372:
Question 1.A9:
Objective type questions.
Answer in are sentence only.
What is meant by ‘Irredeemable Debentures?
Answer:
Debentures that are not redeemable during the life time of a company are known as irredeemable debentures. Therefore, these are also known as perpetual debentures.
Page No 372:
Question 1.A10:
Objective type questions.
Answer in are sentence only.
What do you mean by ‘Debenture Interest’?
Answer:
Debenture interest is a charge against a company’s profit, as it is an expense for the company. It can be paid monthly, quarterly or yearly, as defined in the terms and conditions of the issue.
Page No 372:
Question 1.B1:
Write one word/term/phrase which can substitute each of the following
The debentures where a charge is created on the assets of company.
Answer:
Secured debentures
Explanation: Secured debentures are guarded by a charge on the company’s assets. The charge can be fixed or floating. Fixed charge means that they are secured by a particular asset of the company and floating charge means that they are secured by all the assets of the company in general.
Page No 372:
Question 1.B2:
Write one word/term/phrase which can substitute each of the following
The debentures where no charge is created on the assets of company.
Answer:
Unsecured debentures
Explanation: Debentures that are not secured by any security or do not have a charge on the assets are known as unsecured or naked debentures.
Page No 372:
Question 1.B3:
Write one word/term/phrase which can substitute each of the following
The acknowledgment of debt under common seal of company.
Answer:
Debenture
Explanation: Debentures are debt funds issued in the form of certificates under the common seal of the company. The certificates contain the details about rate of interest for the specified period, repayment of principal and the schedule of interest payments.
Page No 372:
Question 1.B4:
Write one word/term/phrase which can substitute each of the following
The debentures of which payment is made on the expiry of specific period.
Answer:
Redeemable debentures
Explanation: The debentures that are to be paid back after a specified period of time, as per the terms of the issue, are known as redeemable debentures. They can only be redeemed after the expiry of a specified period.
Page No 372:
Question 1.B5:
Write one word/term/phrase which can substitute each of the following
The debentures of which the payment is not made until the winding up of company.
Answer:
Irredeemable debentures
Explanation: Debentures that are not redeemable during the life time of a company are known as irredeemable debentures. These are also known as perpetual debentures.
Page No 372:
Question 1.B6:
Write one word/term/phrase which can substitute each of the following
The debentures which are converted in to shares.
Answer:
Convertible debentures
Explanation: Debentures that have an option/right to be converted into shares (either preference or equity shares) after a specified time period are known as convertible debentures.
Page No 372:
Question 1.B7:
Write one word/term/phrase which can substitute each of the following
The debentures which are not converted into shares.
Answer:
Non-Convertible debentures
Explanation: Debentures that do not carry the option/right to be converted into equity shares after the specified period of time are known as non-convertible debentures.
Page No 372:
Question 1.B8:
Write one word/term/phrase which can substitute each of the following
The debentures which are registered in the register of company.
Answer:
Registered debentures
Explanation: Debentures that are not transferable by mere delivery are known as registered debentures. The names and addresses of holders of these debentures are recorded with the company. Such debentures can be transferred only through the execution of a proper transfer deed.
Page No 372:
Question 1.B9:
Write one word/term/phrase which can substitute each of the following
The debentures which are transferred by way of delivery.
Answer:
Bearer debentures
Explanation: Debentures that are transferable by mere delivery are known as bearer debentures. The names and addresses of the holders of such debentures are not registered with the company. Interest on these debentures is paid only to those holders who produce interest coupons attached with such debentures.
Page No 372:
Question 1.B10:
Write one word/term/phrase which can substitute each of the following
The issue of debentures more than face value of debentures.
Answer:
Issue of debentures at premium
Explanation: When debentures are issued at a price more than their face value, it is known as ‘issue of debentures at premium’. For example, when a debenture of face value Rs 10 is issued at Rs 12, it is issued at a premium of Rs 2. The premium is credited to Securities Premium Account.
Page No 372:
Question 1.C1:
Select most appropriate alternative from those given below :
__________ is acknowledgment of debt under common seal of company.
a) Share
b) Debenture
c) Cheque
d) Bond
Answer:
Debenture is acknowledgment of debt under common seal of company.
Explanation: Debentures are written acknowledgement of debt issued under the common seal of a company with fixed rate of interest to the debenture holders.
Page No 372:
Question 1.C2:
Select most appropriate alternative from those given below :
The issue of debenture at its face value is called the issue ___________.
a) at par
b) at discount
c) at premium
d) none of these
Answer:
The issue of debenture at its face value is called the issue at par.
Explanation: When debentures are issued at their face value, it is known as ‘issue at par’. In this case, issue price is equal to face value.
Page No 372:
Question 1.C3:
Select most appropriate alternative from those given below :
____________debentures which are recorded in register of company.
a) Simple debentures
b) Registered debentures
c) Bearer debentures
d) Open debentures
Answer:
Registered debentures which are recorded in register of company.
Explanation: Those debentures for which the names and addresses of the debenture holders are recorded in a company’s register are known as registered debentures. Such debentures are not transferable by mere delivery.
Page No 372:
Question 1.C4:
Select most appropriate alternative from those given below :
The issue of debentures less than the face value is called ___________.
a) at par
b) at premium
c) at discount
d) none of these
Answer:
The issue of debentures less than the face value is called at discount.
Explanation: When debentures are issued at a price below their face value, it is known as ‘issue of debentures at discount’. Such discount is debited to Discount on Issue of Debentures Account.
Page No 372:
Question 1.C5:
Select most appropriate alternative from those given below :
The debentures which are converted into shares is called____________.
a) converted debentures
b) non-convertible debenture
c) bearer debentures
d) unsecured debentures
Answer:
The debentures which are converted into shares is called converted debentures.
Explanation: The debentures that are issued with an option of being converted into equity shares or preference shares after the expiry of a certain specified period are known as convertible debentures.
Page No 372:
Question 1.C6:
Select most appropriate alternative from those given below :
The issue of debentures more than face value is called___________.
a) at par
b) at discount
c) at premium
d) none of these
Answer:
The issue of debentures more than face value is called at premium.
Explanation: When debentures are issued at a price more than their face value, it is known as ‘issue of debentures at a premium’. Such a premium is credited to the Securities Premium Account.
Page No 372:
Question 1.C7:
Select most appropriate alternative from those given below :
___________debentures of which the amount is repaid written specific period.
a) Redeemable
b) Irredeemable
c) Secured
d) Non convertible
Answer:
Redeemable debentures of which the amount is repaid within specific period.
Explanation: Debentures, on which the amount is to be paid back after a specified period of time, as per the terms of the issue, are known as redeemable debentures. They can only be redeemed after the expiry of a specified time period.
Page No 373:
Question 1.C8:
Select most appropriate alternative from those given below :
__________ debentures which are not secured against any charge on asset of the company.
a) Secured
b) Unsecured
c) Redeemable
d) Convertible
Answer:
Unsecured debentures which are not secured against any charge on asset of the company.
Explanation: The debentures that are not secured by any security or do not have a charge on the assets of a company are known as unsecured or naked debentures.
Page No 373:
Question 1.C9:
Select most appropriate alternative from those given below :
The interest on debentures is transferred to __________.
a) Debentures A/c
b) Profit of Loss A/c
c) Balance Sheet
d) Debenture holders A/c
Answer:
The interest on debentures is transferred to Profit and Loss A/c.
Explanation: Interest on debentures is an expense for a company. Debenture-holders are the creditors of the company and are paid a fixed rate of interest every year till redemption. Therefore, the interest expense is a charge against the profits and is debited to the Profit and Loss Account.
Page No 373:
Question 1.C10:
Select most appropriate alternative from those given below :
The debenture holder is ___________ of the company.
a) debtor
b) creditor
c) owner
d) supplier
Answer:
The debenture holder is creditor of the company.
Explanation: Debentures are debt funds issued under the common seal of a company. These are issued for a specified period of time with a fixed rate of interest. Debenture-holders are regarded as the creditors of the company, as they have lent the amount to the company as a loan.
Page No 373:
Question 1.D1:
State to whether the following statements are True/False.
The debenture holder is owner of the company.
Answer:
False
Explanation: Debenture-holders are the creditors of a company. They get interest at a fixed rate, irrespective of whether the company makes profit or not. Unlike shareholders, they are not the owners of the company.
Page No 373:
Question 1.D2:
State to whether the following statements are True/False.
The acknowledgement of debt under common seal of company in termed as share.
Answer:
False
Explanation: The acknowledgement of debt under the common seal of a company is termed as debenture. Debentures carry a fixed rate of interest that is a charge against company profits. Debentures are paid back after the expiry of the specified term for which they were issued.
Page No 373:
Question 1.D3:
State to whether the following statements are True/False.
The amount of irredeemable debentures is not paid in the life time of the company.
Answer:
True
Explanation: Irredeemable debentures are not payable during the life time of a company. They are also known as perpetual debentures. They are paid only at the time of liquidation or in the event of winding up of the company.
Page No 373:
Question 1.D4:
State to whether the following statements are True/False.
The issue of debentures less than face value of debenture to termed as issue of debentures at discount.
Answer:
True
Explanation: When debentures are issued at a price less than their face value, it is known as ‘issue of debentures at discount’.
Page No 373:
Question 1.D5:
State to whether the following statements are True/False.
The debentures are known as creditors ship capital of the company.
Answer:
True
Explanation: Debentures are debt instruments issued under the common seal of a company to its debenture holders. They are regarded as the creditors of the company as against the owners who are the ‘equity shareholders’. Capital financed through debentures is known as debt capital or creditors’ share capital of the company.
Page No 373:
Question 1.D6:
State to whether the following statements are True/False.
The unregistered debentures are known as naked debentures.
Answer:
True
Explanation: Unregistered debentures are also known as naked or bearer debentures. Such debentures are issued without any security, i.e. they do not have a charge on the assets of a company.
Page No 373:
Question 1.D7:
State to whether the following statements are True/False.
The rate of interest on debentures is attached to the debentures.
Answer:
True
Explanation: Debentures are issued at a fixed rate of interest with payment of interest at regular intervals. However, repayment of principal amount is made only after the expiry of a specified period.
Page No 373:
Question 1.D8:
State to whether the following statements are True/False.
Unsecured debentures are safer than secured debentures.
Answer:
False
Explanation: Unsecured debentures are issued without any security or charge, whereas secured debentures are issued with security or charge (floating or fixed) on the assets of a company. Therefore, secured debentures are more secure because if a company defaults in paying interest, the debenture-holders may sell off the assets in order to recover their dues.
Page No 373:
Question 1.D9:
State to whether the following statements are True/False.
The issue of debenture more than face value is termed on issue of debentures at par.
Answer:
False
Explanation: Issue of debentures at a price more than their face value is known as ‘issue of debentures at a premium’. The amount of a premium so received is credited to the Securities Premium Account.
Page No 373:
Question 1.D10:
State to whether the following statements are True/False.
Premium on issue of debentures is recorded on the asset side of balance sheet.
Answer:
False
Explanation: The premium received on the issue of debentures represents the excess amount received over and above the face value of the debentures. It is a capital gain for the company. Therefore, it is shown on the Liabilities side of the Balance Sheet under the head "Reserves & Surplus".
Page No 373:
Question 1:
Exercise
Amar Ltd. issued 10,000 12% Debentures of Rs 100 each payable Rs 30 on application and remaining amount on allotment. The public applied for Rs 9,000 debentures which were fully allotted and on the relevant allotment money duly received. Give journal entries in the books of Amar Ltd.
Answer:
|
Book of Aman Ltd.
|
|||||
|
Journal Entry
|
|||||
|
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
|
|
|
|
|
|
|
|
|
Bank A/c
|
Dr.
|
|
2,70,000
|
|
|
|
To Debenture Application A/c
|
|
|
|
2,70,000
|
|
|
(Debenture application received on 9,000, 12% Debentures of Rs 30 each)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c
|
Dr.
|
|
2,70,000
|
|
|
|
To 12% Debentures A/c
|
|
|
|
2,70,000
|
|
|
(Debenture application money transferred to 12% Debenture A/c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Allotment A/c
|
Dr.
|
|
6,30,000
|
|
|
|
To 12% Debentures A/c
|
|
|
|
6,30,000
|
|
|
(Debenture allotment due on 9,000 12% Debenture of Rs 70 each)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c
|
Dr.
|
|
6,30,000
|
|
|
|
To Debenture Allotment A/c
|
|
|
|
6,30,000
|
|
|
(Debenture allotment money received)
|
|
|
|
|
|
|
|
|
|
|
|
Page No 373:
Question 2:
Exercise
Tanagi Ltd. issued Rs 10,000 12% debentures of Rs 100 each at a discount of 5% Payable as follows:
On Application Rs 40
On Allotment Rs 55
Show journal entries assuming that all the installments were duly collected. Also show the relevant portion of the balance sheet.
Answer:
|
Books of Tanagi Ltd.
|
|||||
|
Journal Entry
|
|||||
|
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
|
|
|
|
|
|
|
|
|
Bank A/c
|
Dr.
|
|
4,00,000
|
|
|
|
To Debenture Application A/c
|
|
|
|
4,00,000
|
|
|
(Debenture application received on 10,000 12% Debentures of Rs 40 each)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c
|
Dr.
|
|
4,00,000
|
|
|
|
To 12% Debentures A/c
|
|
|
|
4,00,000
|
|
|
(Debenture application money transferred to 12% Debenture A/c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Allotment A/c
|
Dr.
|
|
5,50,000
|
|
|
|
Discount on Issue of Debentures A/c
|
|
|
50,000
|
|
|
|
To 12% Debentures A/c
|
|
|
|
6,00,000
|
|
|
(Debenture Allotment due on 10,000 12% Debenture of Rs 55 each, issued @ discount of 5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c
|
Dr.
|
|
5,50,000
|
|
|
|
To Debenture Allotment A/c
|
|
|
|
5,50,000
|
|
|
(Debenture Allotment received on 10,000, 12% Debentures of Rs 55 each)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet of Tanaji Ltd.
|
|||
|
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
Secured loans
|
|
Cash at bank
|
9,50,000
|
|
12% Debentures
|
10,00,000
|
Miscellaneous Exp. - Discount on Issue of Debentures
|
50,000
|
|
|
10,00,000
|
|
10,00,000
|
|
|
|
|
|
Working Notes:
Page No 374:
Question 3:
Exercise
Archana Ltd. issued 2,000 10% Debentures of Rs 100 each at a premium of Rs 10 per Debenture payable as follows:
| On Application | Rs 50 |
| On Allotment | Rs 60 (Premium included Rs 10) |
The Debentures were fully subscribed and all money was duly received.
Pass Journal entries and show how the amounts appear in Balance Sheet.
Answer:
|
Books of Archana Ltd.
|
|||||
|
Journal Entry
|
|||||
|
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
|
|
|
|
|
|
|
|
|
Bank A/c
|
Dr.
|
|
1,00,000
|
|
|
|
To Debenture Application A/c
|
|
|
|
1,00,000
|
|
|
(Debenture application money received on 2,000, 10% Debentures of Rs 50 each)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Application A/c
|
Dr.
|
|
1,00,000
|
|
|
|
To 10% Debentures A/c
|
|
|
|
1,00,000
|
|
|
(Debenture application money transferred to 10% Debenture A/c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debenture Allotment A/c
|
Dr.
|
|
1,20,000
|
|
|
|
To 10% Debentures A/c
|
|
|
|
1,00,000
|
|
|
To Securities Premium A/c
|
|
|
|
20,000
|
|
|
(Debenture allotment due on 2,000 shares of Rs 60 each including premium of Rs 10 each)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c
|
Dr.
|
|
1,20,000
|
|
|
|
To Debenture Allotment A/c
|
|
|
|
1,20,000
|
|
|
(Debenture allotment money received)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet of Archana Ltd.
|
|||
|
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
Reserves and Surplus
|
|
Cash at bank
|
2,20,000
|
|
Securities Premium
|
20,000
|
|
|
|
Secured Loan
|
|
|
|
|
10% Debentures
|
2,00,000
|
|
|
|
|
2,20,000
|
|
2,20,000
|
|
|
|
|
|
Working Note:
Note: As per the textbook solution 2,500, 10% Debentures were issued but according to the question 2,000, 10% Debentures were issued.
Therefore, our solution is as per the information provided in the question.
Page No 374:
Question 4:
Exercise
Amar Ltd. purchased assets of the book value of Rs 99,000 from Abhi Ltd. It was agreed that purchase consideration to be paid by issuing 11% Debentures of Rs 100 each Assume debentures have been issued.
1. At par
2. At Discount of 10% and
3. At Premium of 10%
Record necessary journal entries
Answer:
|
Books of Amar Ltd. |
|||||
|
Journal Entry |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
|
|
Sundry Assets A/c |
Dr. |
|
99,000 |
|
|
|
To Abhi Ltd. |
|
|
|
99,000 |
|
|
(Assets purchased from Abhi Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
On Issue of Debentures at Par |
|
|
|
|
|
|
|
|
|
|
|
|
|
Abhi Ltd. |
Dr. |
|
99,000 |
|
|
|
To 11% Debentures A/c |
|
|
|
99,000 |
|
|
(990, 11% Debentures issued @ Rs 100 each for purchases consideration of Rs 100 each) |
|
|
|
|
|
|
|
|
|
|
|
|
|
On Issue of Debenture @ 10% Discount |
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Abhi Ltd. |
Dr. |
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99,000 |
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Discount on Issue of Debentures A/c |
Dr. |
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11,000 |
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To 11% Debentures A/c |
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1,10,000 |
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(1,100, 11% Debentures issued @ Rs 100 each (including discount of 10%) for purchase consideration of Rs 99,000) |
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On Issue of Debentures at Premium of 10% |
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Abhi Ltd. |
Dr. |
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99,000 |
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To 11% Debentures A/c |
|
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90,000 |
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To Securities Premium A/c |
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9,000 |
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(900, 11% Debentures issued @ Rs 110 (including premium of 10%) for purchase consideration of Rs 99,000) |
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Working Notes:
WN1: Calculation of Number of Debentures, when Debentures issued at Discount of 10%
WN2: Calculation of Number of Debentures, when Debenture issued at Premium of 10%
Page No 374:
Question 5:
Exercise
Dinesh Ltd. Issued 10,00,000 6% Debentures on 1st April, 2010. Interest is paid on 30 sept., 2010 and 31st March, 2011.
Record necessary journal entries assuming that income tax is deducted at 30% of the amount of interest.
Answer:
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Books of Dinesh Ltd.
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|||||
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Journal Entry
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Date
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Particulars
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L.F.
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Debit Amount
Rs
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Credit Amount
Rs
|
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2010
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|
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Apr.01
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Bank A/c
|
Dr.
|
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10,00,000
|
|
|
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To Debenture Application and Allotment A/c
|
|
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10,00,000
|
|
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(Debenture application and Allotment received on 10,000 6% Debentures of Rs 100 each)
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Apr.01
|
Debenture Application and Allotment A/c
|
Dr.
|
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10,00,000
|
|
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To 6% Debentures A/c
|
|
|
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10,00,000
|
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(Debenture application and allotment transferred to 6% Debenture A/c)
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Sept.30
|
Debenture Interest A/c
|
Dr.
|
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30,000
|
|
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To Income Tax Payable A/c
|
|
|
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9,000
|
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To Debentureholders A/c
|
|
|
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21,000
|
|
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(Amount of interest due on debenture and TDS)
|
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|
|
|
|
|
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|
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Sept.30
|
Debentureholders A/c
|
Dr.
|
|
21,000
|
|
|
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To Bank A/c
|
|
|
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21,000
|
|
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(Interest paid to Debenture holder)
|
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2011
|
|
|
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Mar.31
|
Debenture Interest A/c
|
Dr.
|
|
30,000
|
|
|
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To Income Tax Payable A/c
|
|
|
|
9,000
|
|
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To Debentureholders A/c
|
|
|
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21,000
|
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|
(Amount due on Debenture and TDS)
|
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|
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Mar.31
|
Debentureholders A/c
|
Dr.
|
|
21,000
|
|
|
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To Bank A/c
|
|
|
|
21,000
|
|
|
(Interest paid to Debenture Holder)
|
|
|
|
|
|
|
|
|
|
|
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Mar.31
|
Income Tax Payable A/c
|
Dr.
|
|
18,000
|
|
|
|
To Bank A/c
|
|
|
|
18,000
|
|
|
(Income Tax paid)
|
|
|
|
|
|
|
|
|
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|
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Mar.31
|
Profit and Loss A/c
|
Dr.
|
|
60,000
|
|
|
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To Debenture Interest A/c
|
|
|
|
60,000
|
|
|
(Interest on Debenture transferred to Profit and Loss A/c)
|
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Working Notes:
Calculation of Interest on Debenture and TDS (Income Tax Payable)
View NCERT Solutions for all chapters of Class 15