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Alpha Ltd. has 10,000, 8% Debentures of Rs 100 each due for redemption on 31st March 2018. Debenture Redemption Reserve has a balance of Rs 1,90,000 on 31st March,2017. It was decided to invest the required amount towards Debenture Redemption Investment. Investments were realised at 104% less 0.5% brokerage and debentures were redeemed. Record the necessary entries for the redemption of debentures. |
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Answer» Alpha Ltd. has 10,000, 8% Debentures of Rs 100 each due for redemption on 31st March 2018. Debenture Redemption Reserve has a balance of Rs 1,90,000 on 31st March,2017. It was decided to invest the required amount towards Debenture Redemption Investment. Investments were realised at 104% less 0.5% brokerage and debentures were redeemed. Record the necessary entries for the redemption of debentures. |
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