Accountancy, asked by latagupta905, 10 months ago

X Ltd. has 4.000 12% debentures of 100 each on 1st April, 2018.
According to the terms of issue interest on debentures is payable half
yearly on 30th September and 31st March and the rate of tax deducted at
source is 10%.
Pass necessary journal entries for interest on debentures for the year
2018-19.​

Answers

Answered by nishaaswani1624
7

Answer:

The Journal Entries is attached in the below mentioned Excel sheet...Also the image of the same is attached

Explanation:

Attachments:
Answered by abbusaicharan02
1

Answer:

Concept-

Debenture interest is an expense and is debited in the books of the company.

Solution-

The necessary journal entries for interest on debentures for the year

2018-19 are-

30 september

Debenture interest a/c          Dr.  24000

        to Debentureholders A/c             21600

        to TDS payable A/c                      2400

Debentureholders A/c           Dr.  21600

TDS payable A/c                    Dr.  2400

        To Bank A/c                                24000

31 March

Debenture interest a/c          Dr.  24000

        to Debentureholders A/c             21600

        to TDS payable A/c                      2400

Debentureholders A/c           Dr.  21600

TDS payable A/c                    Dr.  2400

        To Bank A/c                                24000

Statement of profit and loss A/c  Dr. 48000

           To Debenture Interest A/c               48000

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