An unlisted company – other than AIFI, Bank, NBFC and HFC – has debentures on its balance sheet as on 31st March, 2022. Balances are as follows: Particulars Amount (₹) 10% mortgage debentures of ₹ 10 each Number 25,00,00

CS Executive · Corporate Accounting and Financial Management · PYQS · June 2024
An unlisted company – other than AIFI, Bank, NBFC and HFC – has debentures on its balance sheet as on 31st March, 2022. Balances are as follows: Particulars Amount (₹) 10% mortgage debentures of ₹ 10 each Number 25,00,000 2,50,00,000 Debenture Redemption Reserve (DRR) 1,25,00,000 Unencumbered Investments in Fixed deposits of Scheduled Commercial Banks (Interest @ 7%) 37,50,000 Bank Balance 3,25,00,000 The interest on debentures is paid until 31st March, 2022. The debentures were repaid on 30th June, 2022 at 10% premium. The investments were realized at par. Prepare the following ledgers : Debenture Account, Debenture Interest Account and Debentures Redemption Reserve Investment Account. Debenture Redemption Reserve Account. Extract of bank account relating to above transactions.

Answer & Explanation:

Answer 4(b) 10% Mortgage Debentures Account Date Particulars Amount (₹) Date Particulars Amount (₹) 30th June 2022 To Debenture Holders A/c 2,50,00,000 1st April 2022 By balance b/d 2,50,00,000 Debentures Redemption Reserve (DRR) Investment Account Date Particulars Amount (₹) Date Particulars Amount (₹) 1st April 2022 To balance b/d 37,50,000 30th June 2022 By Bank 37,50,000 Debenture Interest Account Date Particulars Amount (₹) Date Particulars Amount (₹) 30th June 2022 To Debenture holder A/c (₹ 2,50,00,000 x 10% x 3/12) 6,25,000 30th June 2022 By Profit and Loss A/c 6,25,000 Debentures Redemption Reserve (DRR) Account Date Particulars Amount (₹) Date Particulars Amount (₹) 30th June 2022 To General Reserve 2,50,00,000 1st April 2022 By Balance b/d 1,25,00,000 1st April 2022 By Profit and Loss A/c (for current year's provision) 1,25,00,000 Bank A/c (Extract) Date Particulars Amount (₹) Date Particulars Amount (₹) 1st April 2022 To Balance b/d 3,25,00,000 30th June 2022 By Debenture Holders A/c (₹ 2,50,00,000 + 10% premium) 2,81,25,000 30th June 2022 To Interest on DRR Investment A/c (₹ 37,50,000 x 7% x 3/12) 65,625 30th June 2022 To DRR Investment A/c (Realization of investment) 37,50,000 30th June 2022 By Balance c/f 81,90,625 3,63,15,625 3,63,15,625

Topics: Corporate Accounting

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