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M.158 An Aid to Accountancy—CBSE XII

8. AN EXTRACT OF BALANCE SHEET OF RANBAXY LTD.
as at...
Particulars Note No. `
I. EQUITY AND LIABILITIES
Shareholders’ Funds
Share Capital 1 24,88,200
Note to Accounts
Particulars `
Share Capital
Authorised Capital
7,00,000 Equity Shares of ` 10 each 70,00,000
Issued Capital
3,39,000 Equity Shares of ` 10 each 33,90,000
Subscribed Capital
Subscribed and Fully Paid-up
9,000 Equity Share of ` 10 each 90,000
(Above shares were allotted for consideration other than cash, i.e.,
to promoters —3,000 Equity Shares and to Vendor—6,000 Equity Shares)
Subscribed but not Fully paid-up
2,99,400 Equity Shares of ` 10 each; ` 8 called-up 23,95,200
Add: Forfeited Shares A/c (600 × ` 5) 3,000 23,98,200
24,88,200
Or
JOURNAL OF MOHIT LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
2017
Mar. 31 Surplus, i.e., Balance in Statement of Profit and Loss A/c ...Dr. 6,40,000
To Debentures Redemption Reserve A/c 6,40,000
(Being the transfer of profit to Debentures Redemption Reserve)
Debentures Redemption Investment A/c (10,000 × ` 100 × 15/100) ...Dr. 1,50,000
To Bank A/c 1,50,000
(Being the investment made @ 15% of face value of debentures)
2018
Mar. 31 Bank A/c ...Dr. 1,50,000
To Debentures Redemption Investment A/c 1,50,000
(Being the investment encashed)
Mar. 31 10% Debentures A/c ...Dr. 10,00,000
To Debentureholders’ A/c 10,00,000
(Being the amount due to debentureholders)
Mar. 31 Debentureholders’ A/c ...Dr. 10,00,000
To Bank A/c 10,00,000
(Being the payment made to debentureholders)
Mar. 31 Debentures Redemption Reserve A/c ...Dr. 10,00,000
To General Reserve A/c 10,00,000
(Being the transfer of DRR to General Reserve on redemption of debentures)
Note: Debentures are to be redeemed out of profits. Therefore, DRR is to be created equal to 100% of
nominal (face) value of debentures outstanding.