Page 220 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Date Particulars L.F.
April 1 Bank Account Dr. 20,00,000
To 12% Debentures Account 20,00,000
(Being 20,000 debentures issued at par)
July 31 Own Debentures Account Dr. 15,680 Unit 9: Methods of Redemption-II
Debenture Interest Account Dr. 640
To Bank Account 16,320
(Being 160 debentures purchased at 102 cum-interest)
Notes
Sep. 30 Debenture Interest Account Dr. 1,19,360
To Bank Account 1,19,040
To Interest on Own Debenture A/c 320
(Being payment of interest on 19,840 debentures belonging to
outsiders)
2005
Feb. 28 Own Debentures Account Dr. 63,360
Debenture Interest Account Dr. 3,200
To Bank Account 66,560
(Being purchase 640 debentures at 99 ex-interest)
March 31 Debenture Interest Account Dr. 1,16,800
To Bank Account 1,15,200
To Interest on Own Debenture A/c 1,600
(Being payment of interest on 19,200 debentures belonging to outsiders)
Profit and Loss Account Dr. 2,40,000
To Debenture Interest Account 2,40,000
(Being debenture interest transferred to P & L account)
March 31 Interest on Own Debentures A/c Dr. 1,920
To Profit and Loss Account 1,920
(Being interest on own debentures transferred to P & L account)
June 30 Bank Account Dr. 33,280
To Own Debentures Account 32,320
To Interest on Own Debentures Account 960
(Being sale of 320 debentures at 104 cum-interest)
Own Debentures Account Dr. 640
To Profit on Sale of Own Debentures Account 640
(Being profit on sale of own debentures)
Sep. 30 Debenture Interest Account Dr. 1,20,000
To Bank Account 1,17,120
To Interest on Own Debentures Account 2,880
(Being payment of interest on 19,520 debentures belonging to
outsiders)
Nov. 30 Own Debentures Account Dr. 1,17,000
Debenture Interest Account Dr. 2400
To Bank Account 1,19,400
(Being purchase of 1,200 debentures at 97.50 ex-interest)
Dec. 31 12% Debentures Account Dr. 48,000
To Own Debentures Account 47,360
To Profit on Cancellation of Own Debentures Account 640
(Being cancellation of 480 debentures and profit transferred)
Dec. 31 Profit on Cancellation Account Dr. 640
To Capital Reserve Account 640
(Being profit on cancellation transferred to capital reserve)
Dec. 31 Debenture Interest Account Dr. 1,440
To Interest on Own Debentures Account 1,440
(Being 3 months’ interest cancelled)
March 31 Debenture Interest Account Dr. 1,14,720
To bank account 1,09,920
To interest on own debentures account 4,800
(Being payment of interest on 18,320 debentures belonging to outsiders)
March 31 Profit on Sale of Own Debentures Account Dr. 960
Contd...
Interest on Own Debentures A/c Dr. 10,080
To Profit and Loss Account 11,040
(Being profit on sale of own debentures and interest on own
debentures transferred to P & L account)
2,38,560
Dr.
Profit and Loss Account LOVELY PROFESSIONAL UNIVERSITY 213
To Debenture Interest A/c 2,38,560
(Being debenture interest transferred)