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Godrej Ltd. has 20,000; 7% Debentures of ₹ 100 each due for redemption on 31st August, 2018. There is a balance of ₹ 3,50,000 in Debentures Redemption Reserve Account as on 31st March, 2016. Investment, as required by the Companies Act, 2013 is made on 1st April, 2017 in fixed deposit bearing interest 6% p.a. Bank deducted TDS 10% on its maturity which is 31st March, 2018.Pass Journal entries for redemption of debentures. |
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Answer» Godrej Ltd. has 20,000; 7% Debentures of ₹ 100 each due for redemption on 31st August, 2018. There is a balance of ₹ 3,50,000 in Debentures Redemption Reserve Account as on 31st March, 2016. Investment, as required by the Companies Act, 2013 is made on 1st April, 2017 in fixed deposit bearing interest 6% p.a. Bank deducted TDS 10% on its maturity which is 31st March, 2018. Pass Journal entries for redemption of debentures. |
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