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10.6 Double Entry Book Keeping—CBSE XII

March 31 TDS Payable A/c ...Dr. 40,000
To Bank A/c 40,000
(Tax deducted at source deposited in Government Account)
March 31 8% Debentures A/c ...Dr. 12,50,000
To Debentureholders’ A/c 12,50,000
(Payment due to debentureholders on redemption)
March 31 Debentureholders’ A/c ...Dr. 12,50,000
To Bank A/c 12,50,000
(Payment due to debentureholders discharged)
March 31 Debentures Redemption Reserve A/c ...Dr. 1,25,500
To General Reserve A/c 1,25,500
(Amount proportionate to 12,500 debentures redeemed transferred
from DRR to General Reserve)

March 31 Statement of Profit and Loss (Finance Cost) ...Dr. 4,00,000
To Interest on Debentures A/c 4,00,000
(Interest on debentures transferred)
2017
March 31 Interest on Debentures A/c ...Dr. 3,00,000
To Debentureholders’ A/c (WN 3) 2,70,000
To TDS Payable A/c 30,000
(Interest due on debentures)
March 31 Debentureholders’ A/c ...Dr. 2,70,000
To Bank A/c 2,70,000
(Debentures’ interest paid)

March 31 TDS Payable A/c ...Dr. 30,000
To Bank A/c 30,000
(Tax deducted at source deposited in Government Account)
March 31 8% Debentures A/c ...Dr. 12,50,000
To Debentureholders’ A/c 12,50,000
(Payment due to debentureholders on redemption)
March 31 Debentureholders’ A/c ...Dr. 12,50,000
To Bank A/c 12,50,000
(Payment due to debentureholders discharged)
March 31 Debentures Redemption Reserve A/c ...Dr. 1,25,000
To General Reserve A/c 1,25,000
(Amount proportionate to 12,500 debentures redeemed transferred from
DRR to General Reserve)

March 31 Statement of Profit and Loss (Finance Cost) ...Dr. 3,00,000
To Interest on Debentures A/c 3,00,000
(Interest on debentures transferred)