Following balances appeared in the books of Bahubali Ltd. as on 1st April, 2014: 14% Debentures - ₹15,00,000 Balance of sinking fund - ₹12,00,000 Sinking fund investment - ₹12,00,000 Following further information is prov

CS Executive · Company Accounts & Auditing Practices · PYQS · June 2016
Following balances appeared in the books of Bahubali Ltd. as on 1st April, 2014: 14% Debentures - ₹15,00,000 Balance of sinking fund - ₹12,00,000 Sinking fund investment - ₹12,00,000 Following further information is provided : — Sinking fund investment is represented by 10%, ₹13,00,000 secured government bonds. — Annual contribution to sinking fund is ₹2,40,000 on 31st March each year. — Balance at bank on 31st March, 2015 is ₹6,00,000 before receipt of interest. — Investment was sold at 90% on 31st March, 2015. — Debentures were redeemed at 10% premium on 31st March, 2015. Prepare necessary ledger accounts for the year ended 31st March, 2015.

Answer & Explanation:

14% Debenture A/c Date Particulars Amount (₹) Date Particulars Amount (₹) 31/3/15 To Deb. Holders A/c 15,00,000 1/4/14 By Balance b/d 15,00,000 15,00,000 15,00,000 Sinking Fund A/C Date Particulars Amount (₹) Date Particulars Amount (₹) 31/3/15 To 10% bond (loss) 30,000 1/4/14 By Balance b/d 12,00,000 31/3/15 To General Reserve (Balancing fig.) 15,40,000 By Profit & Loss 2,40,000 By Bank (Interest on SF investment) 1,30,000 15,70,000 15,70,000 10% Secured Bond of Government Date Particulars Amount (₹) Date Particulars Amount (₹) 1/4/14 To Balance b/d 12,00,000 31/3/15 By Bank 11,70,000 31/3/15 By Sinking Fund A/c 30,000 12,00,000 12,00,000 Bank A/c Date Particulars Amount (₹) Date Particulars Amount (₹) 31/3/15 To Balance b/d 6,00,000 31/3/15 By 14% Debenture 16,50,000 To Sinking Fund (Int.) 1,30,000 31/3/15 By Balance c/d 2,50,000 To SF investment 11,70,000 19,00,000 19,00,000 Debenture holders A/c Date Particulars Amount (₹) Date Particulars Amount (₹) 31/3/15 To Bank 16,50,000 31/3/15 By 14% Debentures 15,00,000 By Premium on redemption 1,50,000 16,50,000 16,50,000

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