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A Ltd. has credit balance of ₹ 1,26,000 in Surplus, i.e., Balance in Statement of Profit and Loss. Instead of declaring dividend it is resolved to utilize the profits to redeem its ₹ 1,20,000 Debentures redeemable at a premium of 5%. Pass necessary journal entries in the books of the company. |
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Answer» :1) Statement of P/L A/c. 120000 To DEBENTURE Holders A/c 1200002) Debenture Holders A/c. 120000 To Bank A/c 120000 |
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