Three Stars Chemical Company has accumulated funds in its Depreciation Fund Account. These funds would be...
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Three Stars Chemical Company has accumulated funds in its Depreciation Fund Account. These funds would be required for replacement of machinery after few years. Therefore, the company has decided to invest these funds in 12% Bonds have maturity of 5 years and were purchased at Rs. 1,000,000 as on 1 April 2020. The interest is payable semiannually. Required 1) 2) 3) Record the purchase of Bonds in the books of accounts as on 1 April, 2020. Record accrued interest on Bonds in the books of accounts as on 30 June, 2020. Record the collection of interest on bonds as on 30 September, 2020 and as on 31 March 2021. Three Stars Chemical Company has accumulated funds in its Depreciation Fund Account. These funds would be required for replacement of machinery after few years. Therefore, the company has decided to invest these funds in 12% Bonds have maturity of 5 years and were purchased at Rs. 1,000,000 as on 1 April 2020. The interest is payable semiannually. Required 1) 2) 3) Record the purchase of Bonds in the books of accounts as on 1 April, 2020. Record accrued interest on Bonds in the books of accounts as on 30 June, 2020. Record the collection of interest on bonds as on 30 September, 2020 and as on 31 March 2021.
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1Star Chemical Company Depreciation Fund Bond Purchase DATE PARTICULARS DEBIT CREDIT 142020 To Depre... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
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