Page 230 - ISCDEBK-12

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

Solution: JOURNAL OF NIKHIL COSMETICS LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
2010
March 31 Bank A/c ...Dr. 21,00,000
To Debentures Application and Allotment A/c 21,00,000
(Being the debentures application money received)
March 31 Debentures Application and Allotment A/c ...Dr. 21,00,000
Loss on Issue of Debentures A/c ...Dr. 1,68,000
To 7% Debentures A/c 21,00,000
To Premium on Redemption of Debentures A/c 1,68,000
(Being the allotment of 7% Debentures redeemable at 8% premium)
2016
March 31 Surplus, i.e., Balance in Statement of Profit and Loss A/c (Note) ...Dr. 1,75,000
To Debentures Redemption Reserve A/c 1,75,000
(Being the profit transferred to create Debentures Redemption Reserve)
2017
March 31 Surplus, i.e., Balance in Statement of Profit and Loss A/c (Note) ...Dr. 1,75,000
To Debentures Redemption Reserve A/c 1,75,000
(Being the profit transferred to Debentures Redemption Reserve)
2018
March 31 Debentures’ Interest A/c ...Dr. 1,47,000
To Debentureholders’ A/c 1,32,300
To TDS Payable A/c 14,700
(Being interest on debentures payable, TDS deducted @ 10%)
March 31 Debentureholders’ A/c ...Dr. 1,32,300
TDS Payable A/c ...Dr. 14,700
To Bank A/c 1,47,000
(Being the interest paid to Debentureholders and TDS deposited)
March 31 Surplus, i.e., Balance in Statement of Profit and Loss A/c (Note) ...Dr. 1,75,000
To Debentures Redemption Reserve A/c 1,75,000
(Being the profit transferred to Debentures Redemption Reserve)
April 1 Debentures Redemption Investment A/c ...Dr. 3,15,000
To Bank A/c 3,15,000
(Being the Investment made as fixed deposit as prescribed in
Companies Act, 2013 earning interest @ 10% p.a.)
June 30 Bank A/c ...Dr. 3,22,087
TDS Collected (Receivable) A/c ...Dr. 788
To Debentures Redemption Investment A/c 3,15,000
To Interest Earned A/c 7,875
(Being the fixed deposit realised on redemption, interest received
@ 10% p.a. for 3 months)
Debentures’ Interest A/c ...Dr. 36,750
To Debentureholders’ A/c 33,075
To TDS Payable A/c 3,675
(Being the interest due to debentureholders for 3 months)
Debentureholders’ A/c ...Dr. 33,075
TDS Payable A/c ...Dr. 3,675
To Bank A/c 36,750
(Being the interest paid to debentureholders and TDS deposited)