Advertisement
Question No 05 Chapter 3 – UNIMAX Class 12 Part 2 – 2021
Nitu Ltd. (an unlisted company) has 20,000, 7%, debentures of ₹ 100 each due for redemption on 31st March 2022. Debenture Redemption Reserve has a balance of ₹ 1,80,000 on 31st March 2021. It was decided to invest the required amount towards Debenture Redemption Investment. Investment were realized at 110% less. 8% brokerage and debenture were redeemed. Record the necessary entries for the redemption of debenture.
The solution of Question 05 Chapter 3 of +2 Part-2: –
Journal
Books of Nitu Ltd.
| Date | Particulars | L.F. | Debit | Credit | |
| 2021 March 31 | Surplus is statement in Profit & Loss A/c | Dr. | 20,000 | ||
| To Debenture redemption reserve A/c | 20,000 | ||||
| (Being transfer of profit as per SBEI guidelines) | |||||
| April 30 | Debenture redemption investment A/c | Dr. | 3,00,000 | ||
| To Bank A/c | 3,00,000 | ||||
| (Being investment made @ 15% of the face value of debenture to be redeemed) | |||||
| 2022 March 31 | Bank A/c | Dr. | 3,27,360 | ||
| To Debenture redemption investment A/c | 3,00,000 | ||||
| To Profit & Loss of Investment A/c | 27,360 | ||||
| (Being investment encashed at 105% less brokerage 0.4%) | |||||
| March 31 | Profit on sale of Investment A/c | Dr. | 27,360 | ||
| To Statement of Profit & Loss A/c | 27,360 | ||||
| (Being transfer of profit on sale of investment) | |||||
| March 31 | Debenture A/c | Dr. | 20,00,000 | ||
| To Debenture holder A/c | 20,00,000 | ||||
| (Being amount due on redemption) | |||||
| March 31 | Debenture holder A/c | Dr. | 20,00,000 | ||
| To Bank A/c | 20,00,000 | ||||
| (Being payment of amount due to debenture holders) | |||||
| March 31 | Debenture redemption reserve A/c | Dr. | 2,00,000 | ||
| To General reserve A/c | 2,00,000 | ||||
| (Being transfer of Debenture Redemption Reserve A/c to General Reserve A/c on redemption) | |||||
Working Note :
| (1)Amount realised from sale of investments : | ₹ | |
| 3,00,000 x 110/100 | = | 3,30,00 |
| Less : Brokerage 3,30,000 x 18/100 | = | 2,640 |
| 3,27,360 | ||
| (2) Total Amount Required for transfer to | ₹ | |
| Debenture Redemption Reserve =10 % of 20,00,000 | = | 2,00,000 |
| Less : Existing Balance | = | 1,80,000 |
| Amount now Required to be transferred to Debenture | ||
| Redemption Reserve | 20,000 |
End of Solution
Check Out the Solution of all questions for this chapter:
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 08 Chapter 3 – UNIMAX Class 12 Part 2 – 2021
Advertisement
Check out all books for PSEB
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.
If you’re a student enrolled in the Punjab School Education Board Class 12, exploring a wide range of books to cover the syllabus thoroughly is essential. While the prescribed textbooks are undoubtedly valuable, supplementing your studies with additional resources can enhance your understanding and knowledge. Consider checking out other books that align with the curriculum, offering different perspectives and insights on the subjects you’re studying. These supplementary materials can provide you with alternative explanations, practice questions, and examples that may aid in clarifying complex concepts. Moreover, exploring diverse sources can expose you to various writing styles and viewpoints, fostering a broader understanding of the subjects. So, seize the opportunity to expand your learning by delving into other books that can complement your studies and contribute to your academic growth.
Advertisement