The following balances appeared in the books of A.Ltd. on April 01, 2017

Rs

12% Debentures

4,00,000

Debentures Redemption Fund

3,60,000

Debentures Redemption Fund Investment

3,60,000

Securities Premium

30,000

Bank Balance

1,00,000

On April 01, 2017, the company redeemed all the debentures at 105 per cent out of funds raised by selling all the investments at Rs 3,48,000. Prepare the necessary ledger accounts.

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Solution

Books of A. Ltd.

12% Debentures Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

2017

Apr. 01

Debenture Holders

4,00,000

Apr. 01

Balance b/d

4,00,000

4,00,000

4,00,000

Debenture Redemption Fund Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

2017

Apr. 01

Debentures Redemption Fund Investment

12,000

Apr. 01

Balance b/d

3,60,000

General Reserve

3,48,000

3,60,000

3,60,000

Debenture Redemption Fund Investment Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

2017

Apr. 01

Balance b/d

3,60,000

Apr. 01

Bank

3,48,000

Debentures Redemption Fund (Loss)

12,000

3,60,000

3,60,000

Cash Book (Bank Column)

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

2017

Apr. 01

Balance b/d

1,00,000

Apr. 01

Debenture Holders

4,20,000

Debentures Redemption Fund Investment

3,48,000

Balance c/d

28,000

4,48,000

4,48,000

Securities Premium Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

2017

Apr. 01

Premium on Redemption of Debentures

20,000

Apr. 01

Balance b/d

30,000

Balance c/d

10,000

30,000

30,000

Debenture Holders Accounts

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

2017

Apr. 01

Bank

4,20,000

Apr. 01

Debentures

4,00,000

Premium on Redemption of Debentures

20,000

4,20,000

4,20,000

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Similar questions

The following balances appeared in the books of Z.Ltd. on April 01, 2016

	Rs
12% Debentures	1,50,000
Debentures Redemption Fund	1,25,000
Debentures Redemption Fund Investment	1,25,000
(Represented by Rs 1,47,500, 3% Govt. Securities)	1,25,000

The annual instalment added to the fund is Rs 20,575. On March 31, 2017, the bank balance after the receipt of interest on the investment was Rs 39,100. On that date, all the investments were sold at 83 per cent and the debentures were duly redeemed.

Show the necessary ledger accounts for the year 2016-17.

On April 01, 2016 the following balances appeared in the books of Z. Ltd.:

	Rs
6% Debentures	1,00,000
Debentures Redemption Reserve Fund	80,000
D.R. Reserve Fund Investments	80,000

The investments consisted of 4% Government securities of the face value of Rs 90,000.

The annual instalment was Rs 16,400. On March 31, 2017, the balance at Bank was Rs 26,000 (after receipt of interest on D.R.Reserve Fund Investment). Investments were realised at 92% and the Debentures were redeemed. The interest for the year had already been paid.

Show the ledger accounts affecting redemption.

Q. The following balances appeared in the books of A Ltd. On January 1, 2011

$\begin{matrix} Items & (Rs) 12% Debentures & 4, 00, 000 Debentures Redemption Fund & 3, 60, 000 Debentures Redemption Fund Investment & 3, 60, 000 Securities Premium & 30, 000 Bank Balance & 1, 00, 000 \end{matrix}$

On January 1, 2011, the company redeemed all the debentures at 105% out of funds raised by selling all the investments at Rs. 3,48,000. Prepare the necessary ledger accounts.

On January 1,2011, the following balances appeared in the books of Z Ltd

$\begin{matrix} Items & Rs. 6 % Debentures & 1, 00, 000 Debentures Redemption Reserve Fund & 80, 000 Debentures Redemption Reserve Fund Investments & 80, 000 \end{matrix}$

The investments consisted of 4 % Government securities of the face value of Rs. 90,000.
The annual instalment was Rs. 16,400. On December 31, 2011, the balance at Bank was Rs. 26,000 (after receipt on interest on Debenture Redemption Reserve Fund Investment). Investments were realised at 92 % and the Debentures were redeemed. The interest for the year had already been paid.
Show the ledger accounts affecting redemption.

The following balances appeared in the books of Z Ltd on January 1,2004.

$\begin{matrix} Items & Rs. 12% Debentures & 1, 50, 000 Debentures Redemption Reserve Fund & 1, 25, 000 Debentures Redemption Fund Investment & 1, 25, 000 (Represented by Rs. 1,47,500, 3 % Govt. Securities ) & 1, 25, 000 \end{matrix}$

The annual installment added to the fund is Rs. 20,575. On December 31,2004, the bank balance after the receipt of interest on the investment was Rs. 39,100. On that date, all the invesment were sold at 83% and the debentures were duly redeemed.
Show the necessary ledger accounts for the year 2004.

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Books of A. Ltd. 12% Debentures Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2017				2017
Apr. 01	Debenture Holders		4,00,000	Apr. 01	Balance b/d		4,00,000
			4,00,000				4,00,000

Debenture Redemption Fund Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2017				2017
Apr. 01	Debentures Redemption Fund Investment		12,000	Apr. 01	Balance b/d		3,60,000
	General Reserve		3,48,000
			3,60,000				3,60,000

Debenture Redemption Fund Investment Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2017				2017
Apr. 01	Balance b/d		3,60,000	Apr. 01	Bank		3,48,000
					Debentures Redemption Fund (Loss)		12,000
			3,60,000				3,60,000

Cash Book (Bank Column)
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2017				2017
Apr. 01	Balance b/d		1,00,000	Apr. 01	Debenture Holders		4,20,000
	Debentures Redemption Fund Investment		3,48,000		Balance c/d		28,000
			4,48,000				4,48,000

Securities Premium Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2017				2017
Apr. 01	Premium on Redemption of Debentures		20,000	Apr. 01	Balance b/d		30,000
	Balance c/d		10,000
			30,000				30,000

Debenture Holders Accounts
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2017				2017
Apr. 01	Bank		4,20,000	Apr. 01	Debentures		4,00,000
					Premium on Redemption of Debentures		20,000
			4,20,000				4,20,000