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Question
Complete the following journal entries left blank in the books of VK Ltd.:
| VK Ltd. Journal |
||||
| Date | Particulars | L.F. |
Dr. Rs |
Cr. Rs |
| 2018 Feb 1 |
___________________ Dr. ___________________ (Purchased own 500, 9% debentures of Rs 100 each at Rs 97 each for immediate cancellation) |
________
|
________
|
|
| Feb 1 |
___________________ Dr. ___________________ ___________________ (Cancelled own debentures) |
________
|
________ ________ |
|
| ______ |
___________________ Dr. ___________________ (______________________) |
________
|
________ | |
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Solution
| VK Ltd. Journal |
||||
| Date | Particulars | L.F. |
Dr. Rs |
Cr. Rs |
| 2018 Feb 1 |
Own Debenture A/c Dr. To cash and Bank A/c (Purchased own 500, 9% debentures of Rs 100 each at Rs 97 each for immediate cancellation) |
48,500
|
48,500
|
|
| Feb 1 |
9% Debentures A/c Dr. To Own Debenture A/c To Gain on cancellation of Own Debenture A/c (Cancelled own debentures) |
50,000
|
48,500 1,500
|
|
| March 31 |
Gain on cancellation of Own Debenture A/c Dr. To Capital Reserve A/c (Gain on cancellation transferred to capital Reserve) |
1,500
|
1,500 | |
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