The Summary Balance Sheet of ABC Ltd. as on 31st March, 2023 read as under: Liabilities Amount (₹) Assets Amount (₹) Share Capital : Freehold property 1,15,000 Authorized share Capital : Stock 1,35,000 40,000 Equity Shar

Journal Entries in the books of ABC Ltd. as on 31st March, 2023 Particulars L.F. Amount Dr. (₹) Amount Cr. (₹) For Bonus Issue: Securities Premium A/c Dr. 30,000 P&L A/c Dr. 20,000 To Bonus to Shareholders A/c 50,000 (Amount transferred for issue of bonus shares to existing shareholders in the ratio of 1:4) Bonus to Shareholders A/c Dr. 50,000 To Equity Share Capital A/c 50,000 (Issue of bonus shares in the ratio of 1:4) For Debenture Redemption: 12% Debentures A/c Dr. 1,20,000 Premium Payable on Redemption of Deb. A/c @ 3% Dr. 3,600 To Debenture holders A/c 1,23,600 (Amount payable to debentures holders) P&L A/c Dr. 3,600 To Premium Payable on Redemption of Deb. A/c 3,600 (Premium payable on redemption charged to surplus A/c) Debenture holders A/c Dr. 1,23,600 To Bank A/c 1,23,600 (Amount paid to debenture holders on redemption) Working Notes: Bonus Issue: Existing Equity Shares = 20,000 shares Bonus Shares to be issued = 20,000 shares / 4 = 5,000 shares Value of Bonus Shares = 5,000 shares × ₹ 10 = ₹ 50,000 Sources for Bonus Issue: Securities Premium (₹ 30,000) and P&L A/c (₹ 20,000) Debenture Redemption: Face Value of Debentures = ₹ 1,20,000 Premium on Redemption = 3% of ₹ 1,20,000 = ₹ 3,600 Total amount payable to debenture holders = ₹ 1,20,000 + ₹ 3,600 = ₹ 1,23,600 Premium on Redemption is charged to P&L A/c.