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Question No 06 Chapter 3 – UNIMAX Class 12 Part 2 – 2021
Jyoti Ltd. (an unlisted company) had issued 10,000, 8% debenture which are due to be redeemed out of profit on 1st Oct. 2022 at a premium of 5%. The company had a debenture redemption reserve of ₹ 1,10,000. It was decided to invest the required amount in Debenture Redemption Investment. Pass necessary journal entries for the redemption of debentures.
The solution of Question 06 Chapter 3 of +2 Part-2: –
Journal
Books of ‘Jyoti’ Ltd.
| Date | Particulars | L.F. | Debit | Credit | |
| 2022 March 31 | Surplus is statement in Profit & Loss A/c | Dr. | 8,90,000 | ||
| To Debenture redemption reserve A/c | 8,90,000 | ||||
| (Being transfer of profit to Debenture Redemption Reserve) | |||||
| April 30 | Debenture redemption investment A/c | Dr. | 1,50,000 | ||
| To Bank A/c | 1,50,000 | ||||
| (Being investment made @ 15% of the face value of debenture to be redeemed) | |||||
| Oct. 1 | Bank A/c | Dr. | 1,50,000 | ||
| To Debenture redemption investment A/c | 1,50,000 | ||||
| (Being investment encashed) | |||||
| Oct. 1 | Debenture A/c | Dr. | 10,00,000 | ||
| Premium on Redemption of debenture A/c | Dr. | 50,000 | |||
| To Debenture holder A/c | 10,50,000 | ||||
| (Being amount due on redemption) | |||||
| Oct. 1 | Debenture holder A/c | Dr. | 10,50,000 | ||
| To Bank A/c | 10,50,000 | ||||
| (Being payment of amount due to debenture holders) | |||||
| Oct. 1 | Debenture redemption reserve A/c | Dr. | 10,00,000 | ||
| To General reserve A/c | 10,00,000 | ||||
| (Being transfer of Debenture Redemption Reserve A/c to General Reserve A/c on redemption) | |||||
Note:
Since the debenture are to be redeemed purely out of profit, an amount equal to 100% of debenture redeemed i.e., ₹ 10,00,000 is transferred to Debenture Redemption Reserve. If such Reserve is created only with 10% of the amount of debentures redeemed, it would means that remaining 90% of the debenture have been redeemed out of capital.
End of Solution
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The solution to all questions of Chapter No. 3 – Redemption of Debentures Class 12 Unimax is shown as follows, click on the image of the question to get the solution.
Question No 07 Chapter 3 – UNIMAX Class 12 Part 2 – 2021
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1. Comprehensive Solutions for All Chapters of Advanced Accountancy Part 1 Class 12 by Unimax
UnimaxSolutions.in offers a comprehensive solution for students studying Advanced Accountancy Part 1 in Class 12. With their meticulously curated study material, students can access comprehensive solutions to all the questions in each chapter. By selecting the chapter name from the study material, students can easily navigate through the topics and find detailed explanations and step-by-step solutions to the problems presented in that section. Whether it’s understanding complex accounting concepts, mastering calculation techniques, or analyzing financial statements, Unimax provides a valuable resource to aid students in their learning journey. With these comprehensive solutions at their disposal, students can enhance their understanding, clarify doubts, and improve their problem-solving skills in Advanced Accountancy, ensuring they are well-prepared for their Class 12 examinations.
- Chapter No. 1 – Accounts of Non-Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
2. Comprehensive Solutions for All Chapters of Advanced Accountancy Part 2 Class 12 by Unimax
UnimaxSolutions.in presents an exceptional resource for students studying Advanced Accountancy Part 2 in Class 12. With their comprehensive study material, students can conveniently access extensive solutions to all the questions in each chapter. By simply selecting the desired chapter from the study material, students can effortlessly navigate through the topics and gain access to detailed explanations and step-by-step solutions to every problem presented in that particular section. Whether it involves understanding intricate accounting principles, honing calculation techniques, or analyzing complex financial statements, Unimax provides a valuable tool to support students in their learning journey. Equipped with these comprehensive solutions, students can enhance their comprehension, resolve any uncertainties, and strengthen their problem-solving abilities in Advanced Accountancy, empowering them to excel in their Class 12 examinations with confidence.
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Punjab School Education Board (PSEB) Solutions of Usha Publication.
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