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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 31,2020 | 16,000 Debentures |
| On March 31, 2021 | 16,000 Debentures |
| On March 31,2022 | 8,000 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. | Debit | Credit | |
| 2017 | |||||
| Bank A/c | Dr. | 40,00,000 | |||
| To Debenture application & Allotment A/c | 40,00,000 | ||||
| (Being debenture application and allotment money recorded) | |||||
| July 1 | Bank A/c | Dr. | 40,00,000 | ||
| Loss on issue of debenture A/c | Dr. | 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 31 | Statement in Profit & Loss A/c | Dr. | 2,00,000 | ||
| To Loss on issue of Debenture A/c | 2,00,000 | ||||
| (Being loss on issue of debenture written off) | |||||
| 2018 March 31 | Surplus statement of Profit & Loss A/c | Dr. | 1,00,000 | ||
| To Debenture redemption reserve A/c | 1,00,000 | ||||
| (Being transfer of Profit & Loss DRR) | |||||
| April 30 | Debenture Redemption Investment A/c | Dr. | 2,40,000 | ||
| To Bank A/c | 2,40,000 | ||||
| (Being 15% of face value is invested) | |||||
| 2019 March 31 | Surplus i.e. Balance in P&L A/c | Dr. | 2,00,000 | ||
| To Debenture redemption reserve A/c | 2,00,000 | ||||
| (Being profit transferred to create debentures redemption reserve) | |||||
| 2020 March 31 | Surplus i.e. Balance in P&L A/c | Dr. | 1,00,000 | ||
| To Debenture redemption reserve A/c | 1,00,000 | ||||
| (Being profit transferred to create debenture redemption reserve) | |||||
| March 31 | Debentures A/c | Dr. | 16,00,000 | ||
| Premium on redemption of debenture A/c | Dr. | 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 31 | Bank A/c | Dr. | 2,40,000 | ||
| To Debenture redemption investment A/c | 2,40,000 | ||||
| (Being investment encashed) | |||||
| March 31 | Debenture holder A/c | Dr. | 16,80,000 | ||
| To Bank A/c | 16,80,000 | ||||
| (Being payment made to debenture holder on redemption of debenture) | |||||
| March 31 | Debenture redemption investment A/c | Dr. | 1,60,000 | ||
| To General reserve A/c | 1,60,000 | ||||
| (Being transfer of proportionate amount of DRR to GR) | |||||
| Apr. 30 | Debenture Redemption Investment A/c | Dr. | 2,40,000 | ||
| To Bank A/c | 2,40,000 | ||||
| (Being 15% of face value is invested) | |||||
| 2021 March 31 | Debenture A/c | Dr. | 16,00,000 | ||
| Premium on Redemption of Debenture A/c | Dr. | 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 31 | Bank A/c | Dr. | 2,40,000 | ||
| To Debenture redemption investment A/c | 2,40,000 | ||||
| (Being investment encashed) | |||||
| March 31 | Debenture holder A/c | Dr. | 16,80,000 | ||
| To Bank A/c | 16,80,000 | ||||
| (Being payment made to debenture holder on redemption of debenture) | |||||
| Debenture redemption investment A/c | Dr. | 1,60,000 | |||
| To General reserve A/c | 1,60,000 | ||||
| (Being transfer of proportionate amount of DRR to GR) | |||||
| Apr. 30 | Debenture Redemption Investment A/c | Dr. | 1,20,000 | ||
| To Bank A/c | 1,20,000 | ||||
| (Being 15% of face value is invested) | |||||
| 2022 March 31 | Debenture A/c | Dr. | 8,00,000 | ||
| Premium on Redemption of Debenture A/c | Dr. | 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 31 | Bank A/c | Dr. | 1,20,000 | ||
| To Debenture redemption investment A/c | 1,20,000 | ||||
| (Being investment encashed) | |||||
| Debenture holder A/c | Dr. | 8,40,000 | |||
| To Bank A/c | 8,40,000 | ||||
| (Being payment made to debenture holder on redemption of debenture) | |||||
| March 31 | Debenture Redemption Reserve A/c | Dr. | 80,000 | ||
| To General reserve A/c | 80,000 | ||||
| (Being transfer of Proportionate amount of DRR to GR) | |||||
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 08 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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