Model: Preparation of ledger accounts straightaway The following balances appeared in the books of Star Ltd. as on 1 April 2010:
|
12% Debentures |
3,00,000 |
|
Debentures Redemption Reserve |
2,50,000 |
|
Debentures Redemption Fund Investments |
2,50,000 |
The debentures redemption fund investment was represented by Rs.2,60,000 9% government securities. The annual instalment amount added to the fund was Rs.41,200. On 31 March 2011, the bank balance before the receipt of interest on investments was Rs.80,000. On the date, the investments were sold at 84% and debentures were duly redeemed. You are required to prepare (i) debentures A/c; (ii) debentures redemption reserve A/c; (iii) debenture redemption fund investment A/c and (iv) the bank A/c for 2010–11. The company closes its books on 31 March every year.