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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. | Debit | Credit | |
| 2020 | |||||
| Oct. 1 | Bank A/c | Dr. | 70,00,000 | ||
| To Debenture application & Allotment A/c | 70,00,000 | ||||
| (Being receipt of application money) | |||||
| Oct. 1 | Debenture Application & Allotment A/c | Dr. | 70,00,000 | ||
| To Debenture A/c | 70,00,000 | ||||
| (Being transfer of application money) | |||||
| 2016 March 31 | Surplus is statement in Profit & Loss A/c | Dr. | 1,00,000 | ||
| To Debenture redemption reserve A/c | 1,00,000 | ||||
| (Being transfer of Profit & Loss to DRR) | |||||
| 2017 March 31 | Surplus statement of Profit & Loss A/c | Dr. | 2,00,000 | ||
| To Debenture redemption reserve A/c | 2,00,000 | ||||
| (Being transfer of Profit & Loss DRR) | |||||
| 2018 March 31 | Surplus in statement of Profit & Loss A/c | Dr. | 4,00,000 | ||
| To Debenture redemption investment A/c | 4,00,000 | ||||
| (Being transfer of Profit & Loss to DRR) | |||||
| April 30 | Debenture redemption investment A/c | Dr. | 2,10,000 | ||
| To Bank A/c | 2,10,000 | ||||
| (Being investment made equal to 15% of ₹ 14,00,000) | |||||
| 2019 March 31 | Debenture A/c | Dr. | 14,00,000 | ||
| To Debenture holder A/c | 14,00,000 | ||||
| (Being amount due on redemption) | |||||
| March 31 | Debenture holder A/c | Dr. | 14,00,000 | ||
| To Bank A/c | 14,00,000 | ||||
| (Being payment of amount due to debenture holders) | |||||
| March 31 | Debenture Redemption Reserve A/c | Dr. | 1,40,000 | ||
| To General reserve A/c | 1,40,000 | ||||
| (Being transfer of proportional amount of DRR to GR) | |||||
| 2020 March 31 | Debenture A/c | Dr. | 14,00,000 | ||
| To Debenture holder A/c | 14,00,000 | ||||
| (Being amount due on redemption) | |||||
| March 31 | Debenture holder A/c | Dr. | 14,00,000 | ||
| To Bank A/c | 14,00,000 | ||||
| (Being payment of amount due to debenture holder) | |||||
| March 31 | Debenture Redemption Reserve A/c | Dr. | 1,40,000 | ||
| To General reserve A/c | 1,40,000 | ||||
| (Being transfer of proportional amount of DRR to GR) | |||||
| 2021 March 31 | Debenture A/c | Dr. | 14,00,000 | ||
| To Debenture holder A/c | 14,00,000 | ||||
| (Being amount due on redemption) | |||||
| March 31 | Debenture holder A/c | Dr. | 14,00,000 | ||
| To Bank A/c | 14,00,000 | ||||
| (Being payment of amount due to debenture holder) | |||||
| March 31 | Debenture Redemption Reserve A/c | Dr. | 1,40,000 | ||
| To General reserve A/c | 1,40,000 | ||||
| (Being transfer of proportional amount of DRR to GR) | |||||
| 2022 March 31 | Debenture holder A/c | Dr. | 14,00,000 | ||
| To Bank A/c | 14,00,000 | ||||
| (Being payment of amount due to debenture holder) | |||||
| March 31 | Debenture Redemption Reserve A/c | Dr. | 1,40,000 | ||
| To General reserve A/c | 1,40,000 | ||||
| (Being transfer of proportional amount of DRR to GR) | |||||
| 2023 March 31 | Bank A/c | Dr. | 2,10,000 | ||
| To Debenture Redemption Investment A/c | 2,10,000 | ||||
| (Being investment encashed before redemption of last instalment) | |||||
| March 31 | Debenture A/c | Dr. | 14,00,000 | ||
| To Debenture holder A/c | 14,00,000 | ||||
| (Being amount due on redemption) | |||||
| March 31 | Debenture holder A/c | Dr. | 14,00,000 | ||
| To Bank A/c | 14,00,000 | ||||
| (Being payment of amount due to debenture holder) | |||||
| March 31 | Debenture Redemption Reserve A/c | Dr. | 1,40,000 | ||
| To General reserve A/c | 1,40,000 | ||||
| (Being transfer of proportional amount of DRR to GR) | |||||
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 09 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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