{"id":86069,"date":"2021-10-07T18:04:00","date_gmt":"2021-10-07T12:34:00","guid":{"rendered":"https:\/\/www.kopykitab.com\/blog\/?p=86069"},"modified":"2021-10-11T21:04:11","modified_gmt":"2021-10-11T15:34:11","slug":"ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10","status":"publish","type":"post","link":"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10\/","title":{"rendered":"TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 &#8211; Redemption of Debentures 2021-22"},"content":{"rendered":"\n<p><img class=\"alignnone size-full wp-image-136189\" src=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/05\/Chapter-10-Redemption-of-Debentures.jpg\" alt=\"TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 - Redemption of Debentures\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/05\/Chapter-10-Redemption-of-Debentures.jpg 1200w, https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/05\/Chapter-10-Redemption-of-Debentures-768x432.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><span data-preserver-spaces=\"true\"><strong>TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10<\/strong> pdf will be provided in this article. Chapter 10 Redemption of Debentures is one of the important chapters of CBSE Class 12. You can easily download the TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 pdf by clicking on the link providing below in this article.\u00a0<\/span><\/p>\n<ul>\n<li>Read More: <a href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions\/\" target=\"_blank\" rel=\"noopener\">TS Grewal Class 12 Solutions\u00a0<\/a><\/li>\n<\/ul>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_47_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69d287cfdac40\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69d287cfdac40\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-visibility-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10\/#download-ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10-pdf\" title=\"Download TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 PDF\">Download TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 PDF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10\/#detailed-topics-%e2%80%93-ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10\" title=\"Detailed Topics &#8211; TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10\u00a0\u00a0\">Detailed Topics &#8211; TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10\u00a0\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10\/#ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10-%e2%80%93-sample-questions\" title=\"TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 \u2013 Sample Questions\u00a0\u00a0\">TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 \u2013 Sample Questions\u00a0\u00a0<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10\/#faq-ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10-%e2%80%93-redemption-of-debentures\" title=\"FAQ: TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 &#8211; Redemption of Debentures\">FAQ: TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 &#8211; Redemption of Debentures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10\/#what-is-the-issue-and-redemption-of-debentures\" title=\"What is the issue and redemption of debentures?\">What is the issue and redemption of debentures?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10\/#which-account-is-used-for-the-redemption-of-debentures\" title=\"Which account is used for the redemption of debentures?\">Which account is used for the redemption of debentures?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10\/#what-is-the-journal-entry-of-redemption-of-debenture\" title=\"What is the journal entry of redemption of debenture?\">What is the journal entry of redemption of debenture?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10\/#how-is-the-redemption-of-debentures-calculated\" title=\"How is the redemption of debentures calculated?\">How is the redemption of debentures calculated?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"download-ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10-pdf\"><\/span><span data-preserver-spaces=\"true\">Download TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 PDF<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/04\/TS-Grewal-Class-12-Accountancy-Solutions-Vol-2-Chapter-10.pdf\">TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10<\/a><\/p>\n<div id=\"example1\" style=\"text-align: justify;\">\u00a0<\/div>\n<p style=\"text-align: justify;\"><style>\n.pdfobject-container { height: 500px;}<br \/>\n.pdfobject { border: 1px solid #666; }<br \/>\n<\/style><\/p>\n<p style=\"text-align: justify;\"><script src=\"https:\/\/www.kopykitab.com\/_utility\/js\/pdfobject.min.js\"><\/script><br \/><script>PDFObject.embed(\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/04\/TS-Grewal-Class-12-Accountancy-Solutions-Vol-2-Chapter-10.pdf\", \"#example1\");<\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"detailed-topics-%e2%80%93-ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10\"><\/span><span data-preserver-spaces=\"true\">Detailed Topics &#8211; TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10\u00a0\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Meaning: Redemption of Debentures means repayment of the due amount of Debentures Holders. It may be at par or premium.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Time of Redemption:-\u00a0\u00a0<\/span><\/p>\n<ol>\n<li><span data-preserver-spaces=\"true\">At maturity: When repayment is made at the date of maturity of Debentures which is determined at the time of issue of Debentures.\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Before maturity: if articles of association and terms of the issue mentioned in the prospectus allow, then a company can redeem its Debentures before the maturity date.\u00a0\u00a0<\/span><\/li>\n<\/ol>\n<p><span data-preserver-spaces=\"true\">Redemption method:-\u00a0\u00a0<\/span><\/p>\n<ol>\n<li><span data-preserver-spaces=\"true\">Redemption in lump\u2013sum: When Redemption is made at the expiry of a specific period, as per the terms of issue.\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Redemption by draw of lots: in this method, a certain proportion of Debentures are redeemed each year, the debentures for which repayment is to be made are selected by draws of lots.\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Redemption by purchase in the open market: If articles of association of a company authorized, it may purchase its Debentures from the open market i.e., stock exchange.\u00a0<\/span><\/li>\n<\/ol>\n<p><span data-preserver-spaces=\"true\">Sources of Redemption of Debentures:-\u00a0\u00a0<\/span><\/p>\n<ol>\n<li><span data-preserver-spaces=\"true\">Proceeds from fresh issue of share capital or Debentures holder.\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">From accumulates Profit.\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Proceeds from the sale of fixed assets.\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">A company may purchase its dentures out of its surplus funds.\u00a0\u00a0<\/span><\/li>\n<\/ol>\n<p><span data-preserver-spaces=\"true\">It is assumed that the company has invested 15% of the redeemable amount on April 30 and encashed it as per the Companies Act, 2013.\u00a0\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">It is also assumed that the company has created Debentures Redemption Reserve @25% of the redeemable debentures and transferred it to General Reserve after Redemption of all the dentures.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Debentures Redemption Reserve:- This Reserve is necessary if Debentures have been purchased for cancellation.\u00a0\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10-%e2%80%93-sample-questions\"><\/span><span data-preserver-spaces=\"true\">TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 \u2013 Sample Questions\u00a0\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">In this section, the students will get TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 sample questions along with the answers.\u00a0\u00a0<\/span><\/p>\n<p><strong>Q1. What is meant by Redemption of Debentures? State the meaning of redemption of Debentures out of profit.\u00a0\u00a0<\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">A. Redemption of Debentures is a process of repayment of loans taken by the issue of Debentures.\u00a0\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Redemption of Debentures our of Profit means the amount equal to the amount utilized for repayment to debenture holders is transferred from Surplus, i.e., Balance in Statement of Profit and Loss of Debentures Redemption Reserve.\u00a0\u00a0<\/span><\/p>\n<p><strong>Q2. What is the method using which the Redemption of Debentures takes place?\u00a0\u00a0<\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">A. Debentures can be redeemed by the following methods:-\u00a0\u00a0<\/span><\/p>\n<ol>\n<li><span data-preserver-spaces=\"true\">In lump sum on maturity\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">In installments by drawing of lots.\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">By purchase from the open market.\u00a0\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">By conversion.\u00a0\u00a0<\/span><\/li>\n<\/ol>\n<p><strong>Q3. State the provisions of the Companies Act, 2013 for the creation of Debentures Redemption Reserve. Name the head under which the Debentures Redemption Reserve is shown in the Balance Sheet.\u00a0\u00a0<\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">A. Debenture Redemption Reserve must have a credit of at least an amount equal to 25% of the nominal value of Debentures outstanding Before the redemption of Debentures begins. Debentures Redemption Reserve is shown in the Equity and Liabilities part of the Balance Sheet under the main head Shareholders Fund and sub-head Reserves and Surplus.\u00a0\u00a0<\/span><\/p>\n<p>We have included complete information regarding\u00a0<span data-preserver-spaces=\"true\"><a href=\"http:\/\/www.cbse.gov.in\/\" target=\"_blank\" rel=\"noopener\">CBSE<\/a> TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 &#8211; Redemption of Debentures. If you have any questions feel free to ask in the comment section.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"faq-ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10-%e2%80%93-redemption-of-debentures\"><\/span>FAQ: TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 &#8211; Redemption of Debentures<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1633609900759\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-is-the-issue-and-redemption-of-debentures\"><\/span>What is the issue and redemption of debentures?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>When the debentures are\u00a0issued at a price less than its par value\u00a0(or the face value) and redeemed at a price higher than its par value, then it is termed the issue of debenture at a discount and redeemable at a premium. The difference between the issue price and the redemption price is considered a loss on the issue of debenture.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1633609920654\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"which-account-is-used-for-the-redemption-of-debentures\"><\/span>Which account is used for the redemption of debentures?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A capital reserve account.\u00a0<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1633609921675\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-is-the-journal-entry-of-redemption-of-debenture\"><\/span>What is the journal entry of redemption of debenture?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Premium on redemption of debentures account was given credit when the debentures were issued. On redemption, this account is\u00a0debited and transferred to Debenture holders&#8217; accounts.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1633609929944\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"how-is-the-redemption-of-debentures-calculated\"><\/span>How is the redemption of debentures calculated?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Profit or loss on cancellation will be calculated by\u00a0comparing the purchase price of debentures canceled with this face value plus the premium payable on redemption\u00a0according to the terms of the issue.\u00a0<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 pdf will be provided in this article. Chapter 10 Redemption of Debentures is one of the important chapters of CBSE Class 12. You can easily download the TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 pdf by clicking on the link providing below &#8230; <a title=\"TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 &#8211; Redemption of Debentures 2021-22\" class=\"read-more\" href=\"https:\/\/www.kopykitab.com\/blog\/ts-grewal-class-12-accountancy-solutions-vol-2-chapter-10\/\" aria-label=\"More on TS Grewal Class 12 Accountancy Solutions Vol 2 Chapter 10 &#8211; Redemption of Debentures 2021-22\">Read more<\/a><\/p>\n","protected":false},"author":244,"featured_media":136189,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":""},"categories":[2985,73693,73712,73410],"tags":[75091,62019,75094],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/86069"}],"collection":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/users\/244"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/comments?post=86069"}],"version-history":[{"count":5,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/86069\/revisions"}],"predecessor-version":[{"id":137642,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/86069\/revisions\/137642"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media\/136189"}],"wp:attachment":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media?parent=86069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/categories?post=86069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/tags?post=86069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}