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Manish Ltd.issued ₹ 40,00,000;8% Debentures of ₹ 100 each on 1st April, 2016. The terms of issue stated that the debentures are to be redeemed at a premium of 5% on 30th June, 2018. The company decided to transfer ₹ 10,00,000 out of profits to Debentures Redemption Reserve on 31st March, 2017 and ₹ 10,00,000 on 31st March, 2018. Pass journal entries regarding the issue and redemption of debentures , DRR and investment without providing for the interest or loss on issue of debentures. |
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Answer» Manish Ltd.issued ₹ 40,00,000;8% Debentures of ₹ 100 each on 1st April, 2016. The terms of issue stated that the debentures are to be redeemed at a premium of 5% on 30th June, 2018. The company decided to transfer ₹ 10,00,000 out of profits to Debentures Redemption Reserve on 31st March, 2017 and ₹ 10,00,000 on 31st March, 2018. Pass journal entries regarding the issue and redemption of debentures , DRR and investment without providing for the interest or loss on issue of debentures. |
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