Page 235 - ISCDEBK-12

Joint Stock Company—Redemption of Debentures 9.9

March 31 Debentures Redemption Reserve A/c ...Dr. 3,12,500
To General Reserve A/c 3,12,500
(Being the one-fourth of DRR transferred to General Reserve on
redemption of one-fourth debentures)
March 31 Statement of Profit and Loss ...Dr. 3,00,000
To Interest on Debentures A/c 3,00,000
(Being the interest on debentures transferred)

2018
March 31 Interest on Debentures A/c ...Dr. 2,00,000
To Debentureholders’ A/c (WN 4) 1,80,000
To TDS Payable A/c 20,000
(Being the debentures’ interest due)
March 31 Debentureholders’ A/c ...Dr. 1,80,000
TDS Payable A/c ...Dr. 20,000
To Bank A/c 2,00,000
(Being the debentures’ interest paid along with TDS payable)

March 31 8% Debentures A/c ...Dr. 12,50,000
To Debentureholders’ A/c 12,50,000
(Being the payment due to debentureholders on redemption)

March 31 Debentureholders’ A/c ...Dr. 12,50,000
To Bank A/c 12,50,000
(Being the payment due to debentureholders discharged)
March 31 Debentures Redemption Reserve A/c ...Dr. 3,12,500
To General Reserve A/c 3,12,500
(Being the one-fourth of DRR transferred to General Reserve on
redemption of one-fourth debentures)
March 31 Statement of Profit and Loss ...Dr. 2,00,000
To Interest on Debentures A/c 2,00,000
(Being the interest on debentures transferred)
2019
March 31 Interest on Debentures A/c ...Dr. 1,00,000
To Debentureholders’ A/c 90,000
To TDS Payable A/c 10,000
(Being the interest due on debentures)
March 31 Debentureholders’ A/c ...Dr. 90,000
TDS Payable A/c ...Dr. 10,000
To Bank A/c 1,00,000
(Being the debentures’ interest and TDS paid)
March 31 8% Debentures A/c ...Dr. 12,50,000
To Debentureholders’ A/c 12,50,000
(Being the payment due to debentureholders on redemption)
March 31 Debentureholders’ A/c ...Dr. 12,50,000
To Bank A/c 12,50,000
(Being the payment due to debentureholders discharged)