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प्रश्न
On 1st April, 2013, Rayon Ltd. issued 2,000, 9% Debentures of 100 each at a discount of 10%, redeemable
at par on 31st March, 2017. The issue was fully subscribed. To meet the provisions of the Companies Act,
2013, the Board of Directors decided to transfer 30,000 to Debenture Redemption Reserve on 31st March,
2014, and the balance on 31st March, 2015. On 1st April, 2016, the company made the required investment in
government securities.
The investments were encashed and the debentures were redeemed on the due date.
It is the policy of the company to write off capital losses in the year in which they occur.
You are required to pass journal entries for issue and redemption of debentures (ignore interest on
debentures).
उत्तर
Journal of Rayon Ltd.
| Date | Particulars | L.F. | Amount Rs. | Amount Rs. |
| 1/4/2013 | Bank A/c .... Dr To Deb. Application and Allotment A/c (Being deb. App. and allotment money received) |
1,80,000
|
1,80,000 | |
| Deb. Application and allotment A/c .......Dr Discount on issue of Debentures A/c .......Dr To 9% Debentures A/c (Being debentures issued) |
1,80,000
20,000
|
2,00,000 |
||
| 31/3/2014 | Surplus in Statement of P/L ....Dr To Debentures Redemption reserve (Being money transferred to Debentures Redemption reserve ) |
30,000
|
30,000 | |
| 31/3/2014 | Statement of P/L .......Dr To Discount on issue of Debentures (Being discount on issue of Debentures written off) |
20,000
|
20,000 | |
| 31/3/2015 | Surplus in statement of P/L...... Dr To Debentures Redemption reserve (Being balance as per requirement transferred to DRR) |
20,000
|
20,000 | |
| 1/4/2016 | Debentures Redemption Investment A/c .....Dr To Bank A/c (Being purchase of investment equal to 15% of the face value of debentures to be redeemed) |
30,000
|
30,000
|
|
| 31/3/2017 | Bank A/c .....Dr To DRI (Being DRI sold) |
30,000
|
30,000 | |
| 31/3/2017 | Debentures A/c .....Dr To Debentures holder A/c (Being amount due to the debenture holder) |
2,00,000
|
2,00,000 |
|
| 31/3/2017 | Debentures holder A/c .......Dr To Bank (Being debentures redeemed) |
2,00,000
|
2,00,000 | |
| 31/3/2017 | Debentures Redemption Reserve A/c ..... Dr To General Reserve (Being DRR transferred to GR) |
50,000
|
50,000 |
