The Balance Sheet of Z Ltd. as at 31-3-2018 supplied the following information : ₹ 13% Debenture Account 14,00,000 13% Debenture Redemption Fund Account 10,00,000 13% Debenture Redemption Fund Investment Account 10,00,00

CS Executive · Company Accounts & Auditing Practices · PYQS · December 2019
The Balance Sheet of Z Ltd. as at 31-3-2018 supplied the following information : ₹ 13% Debenture Account 14,00,000 13% Debenture Redemption Fund Account 10,00,000 13% Debenture Redemption Fund Investment Account 10,00,000 The annual contribution to Debenture Redemption Fund 1,40,000 The debenture were redeemed on 31-3-2019, when investment were sold for ₹14,00,000. Prepare 13% Debenture Redemption Fund Account and 13% Debenture Fund Investment Account.

Answer & Explanation:

Debenture Redemption Fund Account Dr Cr Date Particulars Amount in ₹ Date Particulars Amount in ₹ 31.03.2019 To General Reserve A/c 16,70,000 01.04.2018 By Balance b/d 10,00,000 31.03.2019 By 13% Debenture redemption fund Investment A/c (Profit on sale) 4,00,000 By Profit and Loss Appropriation A/c (Annual Contribution) 1,40,000 By Interest on Debenture Redemption Fund Investment A/c 1,30,000 Total 16,70,000 Total 16,70,000 13% Debenture Redemption Fund Investment A/c Dr Cr Date Particulars Amount in ₹ Date Particulars Amount in ₹ 01.04.2018 To Balance b/d 10,00,000 31.03.2019 By Bank A/c 14,00,000 31.03.2019 To Debenture Redemption Fund A/c (Profit on sale of Investment) 4,00,000 Total 14,00,000 Total 14,00,000

Topics: Company Accounts

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