Page 226 - ISCDEBK-12

8.20 Double Entry Book Keeping (Section A)—ISC XII

Notes:
1. Interest on Debentures issued as collateral security is not paid. Therefore, interest on 15,000; 12% Debentures
of ` 100 each is not accounted.
2. Calculation of Interest: `
(i) Half year ended 30th September, 2016
Ê 12 1ˆ
10,000; 12% Debentures of ` 100 each Á ` 10,00,000 × ¥ ˜ 60,000
Ë 100 2¯
TDS Payable (` 60,000 × 10%) = ` 6,000.

(ii) Half year ended 31th March, 2017
Ê 12 1ˆ
10,000; 12% Debentures of ` 100 each ` 10,00,000 × 100 ¥ 2¯ ˜ 60,000
Á
Ë
Ê 12 1ˆ
15,000; 12% Debentures of ` 100 each Á ` 15,00,000 × ¥ ˜ 90,000
Ë 100 2¯
1,50,000
TDS Payable (` 1,50,000 × 10%) = ` 15,000.