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Question No 10 Chapter 3 – UNIMAX Class 12 Part 2 – 2021

Question No 10 Chapter 3 – UNIMAX Class 12 Part 2 – 2021

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Question No 10 Chapter 3 – UNIMAX Class 12 Part 2 – 2021

ABC Enterprises Ltd. issued 70,000, 6.1/2% debenture of ₹ 100 each on October 1,2015 redeemable in five equal annual instalments starting with March 31,2019. The board decides to transfer to Debenture Redemption Reserve ₹ 1,00,000 and ₹ 2,00,000 on March 31,2016 and 2017 respectively and balance required to be transferred to Debenture Redemption Reserve on March 31,2018. Record necessary journal entries. Ignore entries for payment of interest. Investment as required by low was made in fixe deposit of the bank.

The solution of Question 10 Chapter 3 of +2 Part-2: –

Journal
Books of ABC Enterprises Ltd.

Date  Particulars
L.F.DebitCredit
2020     
Oct. 1Bank A/cDr. 70,00,000 
 To Debenture application & Allotment A/c   70,00,000
 (Being receipt of application money)    
Oct. 1Debenture Application & Allotment A/cDr. 70,00,000 
 To Debenture A/c  70,00,000
 (Being transfer of application money)    
2016 March 31Surplus is statement in Profit & Loss A/cDr. 1,00,000 
 To Debenture redemption reserve A/c  1,00,000
 (Being transfer of Profit & Loss to DRR)    
2017 March 31Surplus statement of Profit & Loss A/cDr. 2,00,000 
 To Debenture redemption reserve A/c  2,00,000
 (Being transfer of Profit & Loss DRR)    
2018 March 31Surplus in statement of Profit & Loss A/cDr. 4,00,000 
 To Debenture redemption investment A/c  4,00,000
 (Being transfer of Profit & Loss to DRR)   
April 30Debenture redemption investment A/cDr. 2,10,000 
 To Bank A/c  2,10,000
 (Being investment made equal to 15% of ₹ 14,00,000)   
2019 March 31Debenture A/cDr. 14,00,000 
 To Debenture holder A/c  14,00,000
 (Being amount due on redemption)   
March 31Debenture holder A/cDr. 14,00,000 
 To Bank A/c   14,00,000
 (Being payment of amount due to debenture holders)    
March 31Debenture Redemption Reserve A/cDr. 1,40,000 
 To General reserve A/c   1,40,000
 (Being transfer of proportional amount of DRR to GR)    
2020 March 31Debenture A/cDr. 14,00,000 
 To Debenture holder A/c   14,00,000
 (Being amount due on redemption)    
March 31Debenture holder A/cDr. 14,00,000 
 To Bank A/c   14,00,000
 (Being payment of amount due to debenture holder)    
March 31Debenture Redemption Reserve A/cDr. 1,40,000 
 To General reserve A/c   1,40,000
 (Being transfer of proportional amount of DRR to GR)    
2021 March 31Debenture A/cDr. 14,00,000 
 To Debenture holder A/c   14,00,000
 (Being amount due on redemption)    
March 31Debenture holder A/cDr. 14,00,000 
 To Bank A/c   14,00,000
 (Being payment of amount due to debenture holder)     
March 31Debenture Redemption Reserve A/cDr. 1,40,000 
 To General reserve A/c   1,40,000
 (Being transfer of proportional amount of DRR to GR)    
2022 March 31Debenture holder A/cDr. 14,00,000 
 To Bank A/c   14,00,000
 (Being payment of amount due to debenture holder)    
March 31Debenture Redemption Reserve A/cDr. 1,40,000 
 To General reserve A/c   1,40,000
 (Being transfer of proportional amount of DRR to GR)    
2023 March 31Bank A/cDr. 2,10,000 
 To Debenture Redemption Investment A/c   2,10,000
 (Being investment encashed before redemption of last instalment)    
March 31Debenture A/cDr. 14,00,000 
 To Debenture holder A/c   14,00,000
 (Being amount due on redemption)    
March 31Debenture holder A/cDr. 14,00,000 
 To Bank A/c   14,00,000
 (Being payment of amount due to debenture holder)    
March 31Debenture Redemption Reserve A/cDr. 1,40,000 
 To General reserve A/c   1,40,000
 (Being transfer of proportional amount of DRR to GR)    

End of Solution


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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.

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