Page 192 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Date
Particulars
2003
Dr.
Bank Account
Jan. 1
To Debentures Account

(Being issue of debentures at par redeemable at par)

31,721
Dr.
Dec. 31 Profit and Loss Appropriation Account

31,721
To Debenture Redemption Fund Account

(Being annual provision made for redemption)
31,721
Dr.
Dec. 31 Debenture Redemption Fund Investment Account

31,721

To Bank Account

(Being the amount of D.R.F. invested)
2004
1,586
Dr.
Dec. 31 Bank Account

1,586
To Interest on Debenture Redemption Fund Investment A/c

(Being receipt of interest on investment)
Dec. 31 Interests on Debenture Redemption Fund Investment A/c
1,586
Dr.
To Debenture Redemption Fund Account

1,586

(Being interest transferred to D.R.F.)

Dr.
31,721
Dec. 31 Profit and Loss Appropriation Account

To Debenture Redemption Fund Account

31,721

(Being annual provision made for redemption)
33,307
Dr.
Dec. 31 Debenture Redemption Fund Investment Account

33,307

To Bank Account
(Being amount of debenture redemption fund invested)

2005
Dec. 31 Bank Account
Dr.
3,251
To Interest on Debenture Redemption Fund Investment A/c

3,251

(Being receipt of Interest on investment)

Dec. 31 Interest on Debenture Redemption Fund Investment L.F. 1,00,000 1,00,000
Dr.
3,251
To Debenture Redemption Fund Account 3,251
(Being interest on investment transferred to debenture redemption
fund account)
Profit and Loss Appropriation Account Dr. 31,721
Unit 8: Methods of Redemption–I
“ “ To Debenture Redemption Fund Account 31,721
(Being annual provision made from profits)
Bank Account Dr. 60,000
“ “ Debenture Redemption Fund Account Dr. 5,028
To Debenture Redemption Fund Investment Account 65,028 Notes
(Being investments sold for 60,000 at a loss of 6,614)
“ “ Debentures Account Dr. 1,00,000
To debenture-holders’ Account 1,00,000
(Being amount due to debenture-holders on redemption)
“ “ Debenture-holders’ Account Dr. 1,00,000
To Bank Account 1,00,000
(Being amount paid to debenture-holders on redemption)
“ “ Debenture Redemption Fund Account Dr. 93,386
To General Reserve Account 93,386
(Being the transfer of balance of DRF account to general reserve)
Ledger Debenture Redemption Fund Account
Date Particulars Date Particulars
2003 2003
Dec. 31 To Balance c/d 31,721 Dec. 31 By P. & L. Appropriation Account 31,721
31,721 31,721
2004 2004
Dec. 31 To Balance c/d 65,028 Jan. 1 By Balance b/d 31,721
Dec. 31 By P. & L. Appropriation Account 31,721
By Interest on DRF Investment A/c 1,586
65,028 65,028
2005 2005
Dec. 31 To D.R.F. Investment A/c 5,028 Jan. 1 By balance b/d 65,028
Dec. 31 To General Reserve A/c 94,972 Dec. 31 By P. & L. Appropriation Account 31,721
By Interest on DRF Investment A/c 3,251
1,00,000 1,00,000
Debenture Redemption Fund Investment Account
Date Particulars Date Particulars
2003 2003
Dec. 31 To Bank Account 31,721 Dec. 31 By balance c/d 31,721
31,721 31,721
2004 2004
Jan. 1 To Balance b/d 31,721 Dec. 31 By balance c/d 65,028
Dec. 31 To Bank Account 33,307
65,028 65,028
2005 2005
Jan. 1 To Balance b/d 65028 Dec. 31 By Bank Account 60,000
Dec. 31 By DRF Account 5,028
65,028 65,028
Debentures Account
2003 2003
Dec. 31 To Balance c/d 1,00,000 Jan.1 By Bank Account 1,00,000
1,00,000 1,00,000
2004 2004
Dec. 31 To Balance c/d 1,00,000 Jan. 1 By Balance b/d 1,00,000
1,00,000 1,00,000
2005 2005
Dec. 31 To Debenture-holders’ Account 1,00,000 Jan. 1 By Balance b/d 1,00,000
1,00,000 1,00,000
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