Page 201 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes Solution:
Manish Mills Limited
Debenture Redemption Fund Account
Date Particulars Date Particulars
Dec. 31 To Balance c/d 4,85,295.52 Dec. 31 By Profit and Loss
Appropriation account 4,71,160.72
Dec. 31 By Debenture Redemption Policy
Account 14,134.80
4,85,295.52 4,85,295.52
2004 2004
Dec. 31 To Balance c/d 9,85,149.93 Jan. 1 By Balance b/d 485,295.52
Dec. 31 By Profit and Loss Appropriation A/c 4,71,160.72
Dec. 31 By Debenture Redemption A/c
(interest) 28,693.69
9,85,149.93 9,85,149.93
2005 2005
Dec. 31 To General Reserve Account 15,00,000 Jan. 1 By Balance b/d 9,85,149.93
Dec. 31 By Profit and Loss
Appropriation A/c 4,71,160.72
Dec. 31 By Debenture Redemption Policy
Account (interest) 43,689.35
15,00,000 15,00,000
Debenture Redemption Policy Account
Date Particulars Date Particulars
Jan. 1 To Bank Account 4,71,160.72 Dec. 31 By Balance c/d 4,85,295.52
Dec. 31 To Debenture Redemption
Fund Account (interest) 14,134.80
4,85,295.52 4,85,295.52
2004 2004
Jan. 1 To Balance b/d 4,85,295.52 Dec. 31 By Balance c/d 9,85,149.93
Jan. 1 To Bank Account 4,71,160.72
Dec. 31 To Debenture Redemption
Fund Account (interest) 28,693.69
9,85,149.93 9,85,149.93
2005 2005
Jan. 1 To Balance b/d 9,85,149.93 Dec. 31 By Bank Account 15,00,000
Jan. 1 To Bank Account 4,71,160.72
Dec. 31 To Debenture Redemption
Fund Account (Int.) 43,689.35
15,00,000 15,00,000

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Caution At the time of redemption of debentures or on the date of maturity of policy, the
amount is received from insurance company and from this amount debentures are
redeemed.

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