Page 344 - MA-12

Model Test Papers M.35

(ii) JOURNAL OF DUBBLIN LTD.

Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 2,40,000
To Debentures Application and Allotment A/c 2,40,000
(Being the debentures application money received)
Debentures Application and Allotment A/c ...Dr. 2,40,000
Loss on Issue of Debentures A/c ...Dr. 20,000
To 9% Debentures A/c 2,00,000
To Securities Premium Reserve A/c 40,000
To Premium on Redemption of Debentures A/c 20,000
(Being 2,000; 9% Debentures issued at a premium of ` 20 and
redeemable at a premium of ` 10 per debenture)
Securities Premium Reserve A/c ...Dr. 20,000
To Loss on Issue of Debentures A/c 20,000
(Being the loss on issue of debentures written off)

6. (a) JOURNAL OF MOON LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
2018
Oct. 1 Own Debentures A/c ...Dr. 27,900
To Bank A/c 27,900
(Being the purchase of 300 own debentures @ ` 93)
10% Debentures A/c ...Dr. 30,000
To Own Debentures A/c 27,900
To Gain on Cancellation of Own Debentures A/c 2,100
(Being the cancellation of 300 own debentures)
Gain on Cancellation of Own Debentures A/c ...Dr. 2,100
To Capital Reserve A/c 2,100
(Being the transfer of gain on cancellation of own debentures to
Capital Reserve)
2019
March 31 Interest on Debentures A/c ...Dr. 3,500
To Debentureholders’ A/c 3,500
(Being the interest due on ` 70,000 @ 10% p.a. for 6 months)
March 31 Debentureholders’ A/c ...Dr. 3,500
To Bank A/c 3,500
(Being the payment made to debentureholders)
March 31 Statement of Profit and Loss ...Dr. 8,500
To Interest on Debentures A/c (Note) 8,500
(Being the interest on debentures transferred to Statement of Profit
and Loss)

Note: Interest on Debentures (30th September, 2017) = 1,00,000 × 10/100 × 6/12 = ` 5,000
Interest on Debentures (31st March, 2018) = ` 70,000 × 10/100 × 6/12 = ` 3,500
Total Interest for the year ended 31st March, 2018 = ` 8,500