Page 385 - AAAXII

M.368 An Aid to Accountancy—CBSE XII

On 1st April of the Financial Year in which Redemption is Due
Debentures Redemption Investment A/c ...Dr. 1,50,000
To Bank A/c 1,50,000
(Being the amount invested in specified securities equal to 15% of the
amount of redeemable debentures)
On Redemption
Bank A/c ...Dr. 1,62,000
To Debentures Redemption Investment A/c 1,50,000
To Interest Earned A/c 12,000
(Being the debentures redemption investment realised and interest received)
9% Debentures A/c ...Dr. 10,00,000
To Debentureholders’ A/c 10,00,000
(Being the amount due on redemption)
Debentureholders’ A/c ...Dr. 10,00,000
To Bank A/c 10,00,000
(Being payment made to debentureholders)
Debentures Redemption Reserve A/c ...Dr. 2,50,000
To General Reserve A/c 2,50,000
(Being the amount in DRR A/c transferred to General Reserve)
Note: As per Section 71(4) of the Companies Act, 2013 and Rule 18(7)(b) of the Companies (Share Capital and
Debentures) Rules, 2014, an amount at least equal to 25% of the Nominal Value of Debentures outstand-
ing is credited to Debentures Redemption Reserve Account and as per Rule 18(7)(c) of the Companies (Share
Capital and Debentures) Rules, 2014 investment is made in specified securities of amount equal to at least
15% of the nominal value of debentures to be redeemed.
11. PROFIT AND LOSS APPROPRIATION ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Particulars ` Particulars `
To Interest on Capital A/cs: By Net Profit as per Profit and
X (5% on ` 2,50,000) 12,500 Loss A/c 3,00,000
Y (5% on ` 1,50,000) 7,500 20,000 Less: Interest on Y’s Loan 5,000
To X’s Salary A/c (` 5,000 × 12) 60,000 (` 1,25,000 × 8/100 × 6/12)
To Y’s Commission A/c (2% on ` 8,00,000) 16,000 2,95,000
To Profit transferred to Capital A/cs: Less: Rent paid to X 50,000 2,45,000
X (1/2) 75,625 By Interest on Drawings A/cs:
Y (1/2) 75,625 1,51,250 X (` 50,000 × 5/100 × 6/12) 1,250
Y (` 40,000 × 5/100 × 6/12) 1,000 2,250
2,47,250 2,47,250
12.
Dr. Z’S CAPITAL ACCOUNT Cr.
Particulars ` Particulars `
To Z’s Executors’ A/c (Balancing Figure) 1,51,000 By Balance b/d 75,000
By Revaluation A/c (Gain) 5,000
By Workmen Compensation Reserve A/c 31,000
(` 1,55,000 × 2/10)
By Profit and Loss Suspense A/c 5,000
(` 75,000 × 4/12 × 2/10)
BY X’s Capital A/c (WN 1 and 2) 21,875
By Y’s Capital A/c (WN 1 and 2) 13,125
1,51,000 1,51,000