Page 203 - MA-12

Joint Stock Company—Redemption of Debentures 8.11

Securities Premium Reserve A/c ...Dr. 1,00,000
Statement of Profit and Loss ...Dr. 1,00,000
To Loss on Issue of Debentures A/c 2,00,000
(Being the loss written off)
Statement of Profit and Loss ...Dr. 60,000
To Interest on Debentures A/c 60,000
(Being the interest transferred)
2013
March 31 Interest on Debentures A/c ...Dr. 80,000
To Debentureholders’ A/c 72,000
To TDS Payable A/c 8,000
(Being the interest due on 8% Debentures for one year and
TDS deducted @ 10%)

Debentureholders’ A/c ...Dr. 72,000
To Bank A/c 72,000
(Being the interest on debentures paid)
TDS Payable A/c ...Dr. 8,000
To Bank A/c 8,000
(Being the TDS deposited in Government Account)

Surplus, i.e., Balance in Statement of Profit and Loss A/c ...Dr. 1,25,000
To Debentures Redemption Reserve A/c 1,25,000
(Being one-half of total DRR required transferred)
Statement of Profit and Loss ...Dr. 80,000
To Interest on Debentures A/c 80,000
(Being the interest transferred)
April 1 Debentures Redemption Investment A/c ...Dr. 37,500
To Bank A/c 37,500
(Being the investment made in fixed deposit with bank earning
interest @ 6%)
2014
March 31 Interest on Debentures A/c ...Dr. 80,000
To Debentureholders’ A/c 72,000
To TDS Payable A/c 8,000
(Being the interest due on 20,000, 8% Debentures for one year and
TDS deducted @ 10%)
Debentureholders’ A/c ...Dr. 72,000
To Bank A/c 72,000
(Being the interest on debentures paid)
TDS Payable A/c ...Dr. 8,000
To Bank A/c 8,000
(Being the TDS deposited in Government Account)