Page 225 - ISCDEBK-12

Joint Stock Company—Issue of Debentures 8.19

Sept. 30 TDS Payable A/c ...Dr. 6,000
To Bank A/c 6,000
(Being the TDS deposited in Government Account)
Oct. 1 Building A/c ...Dr. 10,00,000
Plant and Machinery A/c ...Dr. 8,00,000
Goodwill A/c (Balancing Figure) ...Dr. 1,50,000
To Sundry Liabilities A/c 3,00,000
To M/s Raman & Company 16,50,000
(Being the assets and liabilities of M/s Raman & Company taken
over for a purchase consideration of ` 16,50,000)
Oct. 1 M/s Raman & Company ...Dr. 16,50,000
To 12% Debentures A/c 15,00,000
To Securities Premium Reserve A/c 1,50,000
(Being 15,000; 12% Debentures of ` 100 each issued at 10% premium
to M/s Raman & Company against purchase consideration)
Oct. 1 Bank A/c ...Dr. 10,00,000
To Loan from ICICI Bank A/c 10,00,000
(Being the loan taken from ICICI Bank)
Oct. 1 Debentures Suspense A/c ...Dr. 15,00,000
To 12% Debentures A/c 15,00,000
(Being 15,000; 12% Debentures of ` 100 each issued as collateral
security to bank against loan of ` 10,00,000)
2017
March 31 Debentures’ Interest A/c ...Dr. 1,50,000
To Debentureholders’ A/c 1,35,000
To TDS Payable A/c 15,000
(Being the interest due on 25,000; 12% Debentures of ` 100 each
for half year ended 31st March, 2017, TDS being deducted @ 10%)
March 31 Debentureholders’ A/c ...Dr. 1,35,000
To Bank A/c 1,35,000
(Being the interest paid to debentureholders)
March 31 TDS Payable A/c ...Dr. 15,000
To Bank A/c 15,000
(Being the TDS deposited in Government Account)
March 31 Statement of Profit and Loss ...Dr. 2,10,000
To Debentures’ Interest A/c 2,10,000
(Being the transfer of Debentures’ Interest to Statement of
Profit and Loss)
March 31 Securities Premium Reserve A/c ...Dr. 50,000
To Loss on Issue of Debentures A/c 50,000
(Being the Loss on Issue of Debentures written off from Securities
Premium Reserve)