Page 56 - DEBK-VOL-2

11.6 Double Entry Book Keeping—CBSE XII
March 31 8% Debentures A/c ...Dr. 12,50,000
To Debentureholders’ A/c 12,50,000
(Payment due to debentureholders on redemption)

March 31 Debentureholders’ A/c ...Dr. 12,50,000
To Bank A/c 12,50,000
(Payment due to debentureholders discharged)

March 31 Debentures Redemption Reserve A/c ...Dr. 1,25,500
To General Reserve A/c 1,25,500
(Amount proportionate to 12,500 debentures redeemed transferred
from DRR to General Reserve)

March 31 Statement of Profit and Loss (Finance Cost) ...Dr. 4,00,000
To Interest on Debentures A/c 4,00,000
(Interest on debentures transferred)

2019
March 31 Interest on Debentures A/c ...Dr. 3,00,000
To Debentureholders’ A/c (WN 3) 3,00,000
(Interest due on debentures)

March 31 Debentureholders’ A/c ...Dr. 3,00,000
To Bank A/c 3,00,000
(Debentures’ interest paid)

March 31 8% Debentures A/c ...Dr. 12,50,000
To Debentureholders’ A/c 12,50,000
(Payment due to debentureholders on redemption)

March 31 Debentureholders’ A/c ...Dr. 12,50,000
To Bank A/c 12,50,000
(Payment due to debentureholders discharged)

March 31 Debentures Redemption Reserve A/c ...Dr. 1,25,000
To General Reserve A/c 1,25,000
(Amount proportionate to 12,500 debentures redeemed transferred from
DRR to General Reserve)

March 31 Statement of Profit and Loss (Finance Cost) ...Dr. 3,00,000
To Interest on Debentures A/c 3,00,000
(Interest on debentures transferred)