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प्रश्न
| On 31st March, 2018, W Ltd. had the following balances in its books: | ₹ |
| 9% Debentures | 6,00,000 |
| Debentures Redemption Reserve | 50,000 |
| Surplus,i.e., Balance in Statement of Profit and Loss | 3,00,000 |
On that date, the company decided to transfer ₹ 1,00,000 to Debentures Redemption Reserve. It also decided to redeem debentures of ₹ 3,00,000 on 30th June, 2018.
Pass necessary Journal entries in the books of the company.
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उत्तर
Books of W Ltd.
Journal
|
Date. |
Particulars |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
|
|
31/3/18 |
Statement of Profit or Loss |
Dr. |
|
1,00,000 |
|
|
|
To Debenture Redemption Reserve A/c |
|
|
1,00,000 |
|
|
|
(Surplus transferred to Debenture Redemption Reserve) |
|
|
|
|
|
|
|
|
|
|
|
| 30/4/18 | Debenture Redemption Investment A/c Dr. | 45,000 | |||
| To Bank A/c | 45,000 | ||||
| (Investment is made in specified securities equal to 15% of the value of debentures redeemed) | |||||
|
30/6/18 |
9% Debentures A/c |
Dr. |
|
3,00,000 |
|
|
|
To Debentureholders’ A/c |
|
|
3,00,000 |
|
|
|
(Debenture due for redemption) |
|
|
|
|
|
|
|
|
|
|
|
| 30/6/18 | Bank A/c Dr. | 45,000 | |||
| To Debenture Redemption Investment A/c | 45,000 | ||||
| (Investment made in specified securities is now encashed) | |||||
|
30/6/18 |
Debentureholders’ A/c |
Dr. |
|
3,00,000 |
|
|
|
To Bank A/c |
|
|
3,00,000 |
|
|
|
(Amount due to debentureholders paid) |
|
|
|
|
| 30/6/18 | Debenture Redemption Reserve A/c Dr. | 75,000 | |||
| To General Reserve A/c | 75,000 | ||||
| (50% DRR transferred to General Reserve) | |||||
Working Notes:
Investment made in Specified Securities
`= 300000 xx 15/100 = "Rs" 45000`
Note:
1. Here, the entry for transferring the amount of DRR to General Reserve A/c has been passed with 50% of DRR amount, since the company has not fully redeemed all its debentures. Therefore, 50% of DRR amount i.e. 50% of 1,50,000, transferred to General Reserve.
2. Entries for interest on debentures have been ignored in the above solution as the question was silent in this regards. However, the students' may journalise the entries related to interest on debentures as given below.
Journal
|
Date |
Particular |
|
L.F. |
Debit Amount |
Credit Amount |
|
2018 |
|
||||
|
Mar. 31 |
Debenture Interest A/c |
Dr. |
33,750 |
||
|
|
To Debentureholders’ A/c |
|
33,750 |
||
|
|
(Interest on 9% debentures due) |
|
|||
|
|
|
||||
|
Mar.31 |
Debentureholders’ A/c |
Dr. |
33,750 |
||
|
|
To Bank A/c |
|
33,750 |
||
|
|
(Payment of interest to debentureholders’) |
|
|||
|
|
|
||||
|
Mar. 31 |
Statement of Profit and Loss |
Dr. |
33,750 |
||
|
|
To Debenture Interest A/c |
|
33,750 |
||
|
|
(Transfer of debenture interest to Statement of Profit and Loss) |
|
संबंधित प्रश्न
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