Page 242 - ISCDEBK-12

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

Debentureholders’ A/c ...Dr. 3,00,000
To Bank A/c 3,00,000
(Being the payment made to debentureholders)
Debentures Redemption Reserve A/c ...Dr. 62,500
To General Reserve A/c 62,500
(Being the amount proportionate to debentures redeemed
transferred to General Reserve)
Statement of Profit and Loss ...Dr. 80,000
To Interest on Debentures A/c 80,000
(Being the interest transferred)
Interest Earned A/c ...Dr. 2,250
To Statement of Profit and Loss 2,250
(Being the interest earned transferred)

2017
March 31 Interest on Debentures A/c ...Dr. 60,000
To Debentureholders’ A/c 54,000
To TDS Payable A/c 6,000
(Being the interest due on 15,000; 8% Debentures for one
year and TDS deducted @ 10%)
Debentureholders’ A/c ...Dr. 54,000
To Bank A/c 54,000
(Being the interest on debentures paid)
TDS Payable A/c ...Dr. 6,000
To Bank A/c 6,000
(Being the TDS deposited in Government Account)
Interest Accrued But Not Due A/c ...Dr. 2,025
TDS Collected (Receivable) A/c ...Dr. 225
To Interest Earned A/c 2,250
(Being the interest on fixed deposit @ 6% provided, TDS was
deducted by Bank @ 10%)
8% Debentures A/c ...Dr. 2,50,000
Premium on Redemption of Debentures A/c ...Dr. 50,000
To Debentureholders’ A/c 3,00,000
(Being the amount due on 5,000; 8% Debentures on redemption)
Debentureholders’ A/c ...Dr. 3,00,000
To Bank A/c 3,00,000
(Being the payment made to debentureholders)
Debentures Redemption Reserve A/c ...Dr. 62,500
To General Reserve A/c 62,500
(Being the amount proportionate to debentures redeemed
transferred to General Reserve)
Statement of Profit and Loss ...Dr. 60,000
To Interest on Debentures A/c 60,000
(Being the interest on debentures transferred)
Interest Earned A/c ...Dr. 2,250
To Statement of Profit and Loss 2,250
(Being the interest earned transferred)