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Joint Stock Company—Redemption of Debentures 9.17

2018
March 31 Interest on Debentures A/c ...Dr. 40,000
To Debentureholders’ A/c 36,000
To TDS Payable A/c 4,000
(Being the interest due on 10,000, 8% Debentures for one year and
TDS deducted @ 10%)
Debentureholders’ A/c ...Dr. 36,000
To Bank A/c 36,000
(Being the interest on debentures paid)
TDS Payable A/c ...Dr. 4,000
To Bank A/c 4,000
(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. 40,000
To Interest on Debentures A/c 40,000
(Being the interest transferred)
Interest Earned A/c ...Dr. 2,250
To Statement of Profit and Loss 2,250
(Being the interest earned transferred)
2019
March 31 Interest on Debentures A/c ...Dr. 20,000
To Debentureholders’ A/c 18,000
To TDS Payable A/c 2,000
(Being the interest due on 5,000; 8% Debentures for one
year and TDS deducted @ 10%)
Debentureholders’ A/c ...Dr. 18,000
To Bank A/c 18,000
(Being the interest on debentures paid)
TDS Payable A/c ...Dr. 2,000
To Bank A/c 2,000
(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%)