Page 248 - ISCDEBK-12

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

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. 3,375
TDS Collected (Receivable) A/c ...Dr. 375
To Interest Earned A/c 3,750
(Being the interest on fixed deposit @ 10% 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 5,000; 8% Debentures due for 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 on debentures transferred)
Interest Earned A/c ...Dr. 3,750
To Statement of Profit and Loss 3,750
(Being the interest earned transferred)
Ledger Accounts

Dr. DEBENTURES REDEMPTION RESERVE ACCOUNT Cr.
Date Particulars ` Date Particulars `
2013 2013
March 31 To Balance c/d 1,56,250 March 31 By Surplus, i.e., Balance in
Statement of Profit and Loss 1,56,250
1,56,250 1,56,250
2014 2013
March 31 To Balance c/d 3,12,500 April 1 By Balance b/d 1,56,250
2014
March 31 By Surplus, i.e., Balance in
Statement of Profit and Loss 1,56,250
3,12,500 3,12,500
2015 2014
March 31 To General Reserve A/c 62,500 April 1 By Balance b/d 3,12,500
To Balance c/d 2,50,000
3,12,500 3,12,500
2016 2015
March 31 To General Reserve A/c 62,500 April 1 By Balance b/d 2,50,000
To Balance c/d 1,87,500
2,50,000 2,50,000
2017 2016
March 31 To General Reserve A/c 62,500 April 1 By Balance b/d 1,87,500
To Balance c/d 1,25,000
1,87,500 1,87,500