1.

On 31st March, 2018, W Ltd. had the following balances in its books: ₹ 9% Debentures 6,00,000 Debentures Redemption Reserve 50,000 Surplus,i.e., Balance in Statement of Profit and Loss 3,00,000 On that date, the company decided to transfer ₹ 1,00,000 to Debentures Redemption Reserve. It also decided to redeem debentures of ₹ 3,00,000 on 30th June, 2018.Pass necessary Journal entries in the books of the company.

Answer»


















On 31st March, 2018, W Ltd. had the following balances in its books:
9% Debentures 6,00,000
Debentures Redemption Reserve 50,000
Surplus,i.e., Balance in Statement of Profit and Loss 3,00,000


On that date, the company decided to transfer ₹ 1,00,000 to Debentures Redemption Reserve. It also decided to redeem debentures of ₹ 3,00,000 on 30th June, 2018.


Pass necessary Journal entries in the books of the company.


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