Page 169 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

2001
6,000
20,000 Dec. 31
Jan. 1
To Premium on Redemption of
By Balance c/d
Debentures Account
30,000
30,000

2002

2002
By P. & L. Account
24,000 Dec. 31
Jan. 1 To 12% Debentures Account 10,000 2001 By P. & L. Account 24,000
6,000
To balance b/d
By Balance c/d 18,000
24,000 24,000
2003 2003
Accounting for Companies-I
Jan. 1 To balance b/d 18,000 Dec. 31 By P. & L. Account 6,000
By Balance c/d 12,000
18,000 18,000
Notes 2004 2004
Jan. 1 To balance b/d 12,000 Dec. 31 By P. & L. Account 6,000
By balance c/d 6,000
12,000 12,000
2005 2005
Jan. 1 To balance b/d 6,000 Dec. 31 By P. & L. Account 6,000
6,000 6,000

(b) When such debentures are repayable by equal annual drawing in 5 years:
Year Nominal value of Period of Issue Product Ratio Amount of loss to be w/o
debentures used ( ) ( )
( )
2001 2,00,000 12 Months 24,00,000 5 5
30,000 × = 10,000
15
2002 1,60,000 12 Months 19,20,000 4 4
30,000 × = 8,000
15
2003 1,20,000 12 Months 14,40,000 3 3
30,000 × = 6,000
15
2004 80,000 12 Months 9,60,000 2 2
30,000 × = 4,000
15
2005 40,000 12 Months 4,80,000 1 1
30,000 × = 2,000
15
15 30,000

Loss on Issue of Debentures Account
Date Particulars ( ) Date Particulars ( )
2001 2001
Jan., 1 To 12% Debentures Account 10,000 Dec. 31 By P. & L. Account 10,000
To Premium on Redemption of 20,000 By balance c/d 20,000
Debentures A/c
30,000 30,000
2002 2002
Jan., 1 To balance b/d 20,000 Dec. 31 By P. & L. Account 8,000
By balance c/d 12,000
20,000 20,000
2003 2003
Jan., 1 To balance b/d 12,000 Dec. 31 By P. & L. Account 6,000
By balance c/d 6,000
12,000 12,000
2004 2004
Jan., 1 To balance b/d 6,000 Dec. 31 By P. & L. Account 4,000
By balance c/d 2,000
6,000 6,000
2005 2005
Jan., 1 To balance b/d 2,000 Dec. 31 By P. & L. Account 2,000
2,000 2,000

162 LOVELY PROFESSIONAL UNIVERSITY