Manish Ltd. issued Rs 38,00,000; 8% Debentures of Rs 100 each on 1st A

1.	Manish Ltd. issued Rs 38,00,000; 8% Debentures of Rs 100 each on 1st April,2013. The terms of issue stated that the debentures were due to redeemed at a premium of 5% on 30th June, 2015. The Company decided to transfer out of profits Rs 5,50,000 to Debenture Redemption Reserve on 31st March, 2014 and Rs 4,00,000 on 31st March, 2015. Pass the necessary Journal entries the issue and redemption of debentures, without providing for either the interest or loss on issue of debentures.
Answer» Manish Ltd. issued Rs 38,00,000; $8 %$ Debentures of Rs 100 each on 1st April,2013. The terms of issue stated that the debentures were due to redeemed at a premium of $5 %$ on 30th June, 2015. The Company decided to transfer out of profits Rs 5,50,000 to Debenture Redemption Reserve on 31st March, 2014 and Rs 4,00,000 on 31st March, 2015. Pass the necessary Journal entries the issue and redemption of debentures, without providing for either the interest or loss on issue of debentures.

Manish Ltd. issued Rs 38,00,000; 8% Debentures of Rs 100 each on 1st April,2013. The terms of issue stated that the debentures were due to redeemed at a premium of 5% on 30th June, 2015. The Company decided to transfer out of profits Rs 5,50,000 to Debenture Redemption Reserve on 31st March, 2014 and Rs 4,00,000 on 31st March, 2015. Pass the necessary Journal entries the issue and redemption of debentures, without providing for either the interest or loss on issue of debentures.

Answer»

Manish Ltd. issued Rs 38,00,000; $8 %$ Debentures of Rs 100 each on 1st April,2013. The terms of issue stated that the debentures were due to redeemed at a premium of $5 %$ on 30th June, 2015. The Company decided to transfer out of profits Rs 5,50,000 to Debenture Redemption Reserve on 31st March, 2014 and Rs 4,00,000 on 31st March, 2015.

Pass the necessary Journal entries the issue and redemption of debentures, without providing for either the interest or loss on issue of debentures.

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