1.

Saraswati Ltd. issued 10,000 6% Debentures of Rs 100 each at a premium of 5% on 1st April, 2013 redeemable on March 31,2018. The issue was fully subscribed. It was decided to invest 15% of the face value of debenture to be redeemed towards Debenture Redemption Investment on 30th April 2017. Investments were encashed and Debentures were redeemed on due date. Record necessary entries for issue and redemption of deberature.

Answer»

Saraswati Ltd. issued 10,000 6% Debentures of Rs 100 each at a premium of 5% on 1st April, 2013 redeemable on March 31,2018. The issue was fully subscribed. It was decided to invest 15% of the face value of debenture to be redeemed towards Debenture Redemption Investment on 30th April 2017. Investments were encashed and Debentures were redeemed on due date. Record necessary entries for issue and redemption of deberature.



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