Page 197 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes C. Debentures purchased in open market:
st
(i) 31 December 2004 at the cost of 33,498 (paid up value 35,178)
st
(ii) 31 December 2005 at the cost of 46,800 (paid up value 46,980). You are required
to prepare the necessary ledger accounts for two years.
[Adapted from C.A. (final) May 1973]
Solution:
Good Fortune Limited
Sinking Fund Account
Date Particulars Date Particulars
Dec. 31 To Balance c/d 72,000 Dec. 31 By Profit and Loss Appropriation A/c 72,000
72,000 72,000
2004 2004
Dec. 31 To General Reserve A/c 35,178
To Balance c/d 1,08,822 Jan. 1 By Balance b/d 72,000
Dec. 31 By P. & L. Appropriation A/c 72,000
1,44,000 1,44,000
2005 2005
Dec. 31 To General Reserve A/c 46,980 Jan.1 By Balance b/d 1,08,822
Dec. 31 To Balance c/d 1,33,842 Dec. 31 By Profit and Loss Appropriation A/c 72,000
1,80,822 1,80,822
Sinking Fund Investments Account
Date Particulars Date Particulars
Dec. 31 To Bank Account 72,000 Dec. 31 By Balance c/d 72,000
72,000 72,000
2004 2004
Jan. 1 To Balance b/d 72,000 Dec. 31 By Bank A/c 33,516
Dec. 31 To Bank A/c 72,000 Dec. 31 By Profit and Loss A/c
(33,516 – 33,612) 96
By Balance c/d 1,10,388
1,44,000 1,44,000
2005 2005
Jan.1 To Balance b/d 1,10,388 Dec. 31 By Bank Account 46,800
Dec. 31 To Bank Account 72,000 Dec. 31 By Balance c/d 1,35,948
Dec. 31 To Capital Reserve 360
1,82,748 1,82,748
8% Debentures Account

Date Particulars Date Particulars
Dec. 31 To Balance c/d 30,00,000 Jan. 1 By Bank Account 30,00,000
2004 2004
Dec. 31 To Bank A/c 33,498 Jan. 1 By Balance b/d 30,00,000
Dec. 31 To Capital Reserve A/c 1,680
Dec. 31 To Balance c/d 29,64,822
30,00,000 30,00,000
2005 2005
Dec. 31 To Bank Account 46,800 Jan. 1 By Balance b/d 29,64,822
To Capital Reserve 180
To Balance c/d 29,17,842
29,64,822 29,64,822

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