Advertisement

Question No 11 Chapter 3 – UNIMAX Class 12 Part 2 – 2021

Question No 11 Chapter 3 – UNIMAX Class 12 Part 2 – 2021

Advertisement

Question No 11 Chapter 3 – UNIMAX Class 12 Part 2 – 2021

Tala Power Ltd. (an unlisted company) issued 40,000, 7% debenture of ₹ 100 each on July 1,2017 redeemable at premium of 5% as under:

On March 31,202016,000 Debentures
On March 31, 202116,000 Debentures
On March 31,20228,000 Debentures

It was decided to transfer Debenture Redemption Reserve ₹ 1,00,000 on March 31,2018; ₹ 2,00,000 on March 31,2019 and balance on March 31,2020. Record necessary journal entries ignoring interest.
(amount transfer to DRR on march 31,2020- ₹ 1,00,000 and the balance of this account transfer to General Reserve ₹ 4,00,000)

The solution of Question 11 Chapter 3 of +2 Part-2: –

Journal
Books of Tata Power Ltd.

Date  Particulars
L.F.DebitCredit
2017     
 Bank A/cDr. 40,00,000 
 To Debenture application & Allotment A/c   40,00,000
 (Being debenture application and allotment money recorded)    
July 1Bank A/cDr. 40,00,000 
 Loss on issue of debenture A/cDr. 2,00,000 
 To Debenture A/c  40,00,000
 To Premium on Redemption A/c  2,00,000
 (Being 40,000 7% debenture issued @ ₹ 100 each redeemable at premium of 5%)    
2018 March 31Statement in Profit & Loss A/cDr. 2,00,000 
 To Loss on issue of Debenture A/c  2,00,000
 (Being loss on issue of debenture written off)    
2018 March 31Surplus statement of Profit & Loss A/cDr. 1,00,000 
 To Debenture redemption reserve A/c  1,00,000
 (Being transfer of Profit & Loss DRR)    
April 30Debenture Redemption Investment A/cDr. 2,40,000 
 To Bank A/c  2,40,000
 (Being 15% of face value is invested)   
2019 March 31Surplus i.e. Balance in P&L A/cDr. 2,00,000 
 To Debenture redemption reserve A/c  2,00,000
 (Being profit transferred to create debentures redemption reserve)   
2020 March 31Surplus i.e. Balance in P&L A/cDr. 1,00,000 
 To Debenture redemption reserve A/c  1,00,000
 (Being profit transferred to create debenture redemption reserve)   
March 31Debentures A/cDr. 16,00,000 
 Premium on redemption of debenture A/cDr. 80,000 
 To Debenture holder A/c   16,80,000
 (Being amount due to debenture holder on redemption of debentures @ ₹ 100 each on 16,000 debenture and premium payable @ 5%p.a.)    
March 31Bank A/cDr. 2,40,000 
 To Debenture redemption investment A/c   2,40,000
 (Being investment encashed)    
March 31Debenture holder A/cDr. 16,80,000 
 To Bank A/c   16,80,000
 (Being payment made to debenture holder on redemption of debenture)    
March 31Debenture redemption investment A/cDr. 1,60,000 
 To General reserve A/c   1,60,000
 (Being transfer of proportionate amount of DRR to GR)    
Apr. 30Debenture Redemption Investment A/cDr. 2,40,000 
 To Bank A/c   2,40,000
 (Being 15% of face value is invested)    
2021 March 31Debenture A/cDr. 16,00,000 
 Premium on Redemption of Debenture A/cDr. 80,000 
 To Debenture holder A/c   16,80,000
 (Being amount due to debenture holder on redemption of debenture @ ₹ 100 each on 16000 debenture and premium payable @ 5%p.a.)    
March 31Bank A/cDr. 2,40,000 
 To Debenture redemption investment A/c   2,40,000
 (Being investment encashed)    
March 31Debenture holder A/cDr.       16,80,000  
 To Bank A/c   16,80,000
 (Being payment made to debenture holder on redemption of debenture)    
 Debenture redemption investment A/cDr. 1,60,000 
 To General reserve A/c   1,60,000
 (Being transfer of proportionate amount of DRR to GR)    
Apr. 30Debenture Redemption Investment A/cDr. 1,20,000 
 To Bank A/c   1,20,000
 (Being 15% of face value is invested)    
2022 March 31Debenture A/cDr. 8,00,000 
 Premium on Redemption of Debenture A/cDr. 40,000 
 To Debenture holder A/c   8,40,000
 (Being amount due to debenture holder on redemption of debenture @ ₹ 100 each on 8000 debenture and premium payable @ 5%p.a.)    
March 31Bank A/cDr. 1,20,000 
 To Debenture redemption investment A/c   1,20,000
 (Being investment encashed)    
 Debenture holder A/cDr. 8,40,000 
 To Bank A/c   8,40,000
 (Being payment made to debenture holder on redemption of debenture)    
March 31Debenture Redemption Reserve A/cDr. 80,000 
 To General reserve A/c   80,000
 (Being transfer of Proportionate 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.

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.

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.

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

Leave a Reply

Your email address will not be published. Required fields are marked *