Solution . It decides to redeem these debentures in two instalments of ₹ st3,00,000 and ₹ 2,00,000 on December 31 2018 and March 31st 2020 respectively. Redemption will be carried out by annual drawings of ` 2,50,000 (face value) commencing at the March 2020. All money was received. 8,00,000, 12% debentures into equity shares of Rs. Pass necessary journal entries for the issue and redemption of debentures in the following cases: (i) Issued at par and redeemable at a premium of 10% (ii)Issued at a premium of 10% and redeemable at a premium of 20%. Show the journal entries to … Half of the debentures were due for redemption on 31 st … Professional academic writers. 100 each at par on January 1, 2015. )(a) On issue of debentures, the entry will be: Bank account Dr. Pass necessary journal entries for redemption of debentures. 100 each at … (ii)Issued at a premium of 10% and redeemable at a premium of 20%. Pass journal entries when debentures have been issued at a premium of 10%. There was a credit balance of ₹ 6,00,000 in Surplus, i.e,Balance in Statement of … Sol. 4.1.4 Accounting Entries 1. When debentures are issued at par and repayable at par: Particulars L.F. Dr. This is invested in such scheme which gives us Lumbsum amount so that we can easily repay the debenture without any tension. 77% off (1 days ago) Journal Entry For Coupon Redemption can offer you many choices to save money thanks to 12 active results. Understand the meaning of redemption and the purpose of issuing redeemable ... You are required to pass necessary Journal Entries including cash transactions in the books of the company. The company had a balance of ₹ 4,40,000 in the Debenture Redemption Reserve Account on 31st March, 2018. 5" " (ii)Inthe’BalanceSheet,’previous’year’columnmay’beignored’ (iii)IfanexamineehaspresentedtheBalanceSheetwith‘Subscribedandnotfully’ Multiple Choice Questions for important part of exams for Grade 12 Accountancy and if … 100 each at par and redeemable at par. The debentures were dated 1 January and pay interest on 1 July and 1 January. For redemption, 4000 equity shares of Rs.10 each are issued at 10% premium. Also show how they will … We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. 30. The issue was fully subscribed. Pass necessary journal entries in the books of Boxer Limited. 15.Pass necessary journal entries for the issue and redemption of debentures in the following cases 20,000, 12% debentures of Rs 50 each were issued and to be redeemed as follows. Strong Ltd. issued 10,000, 14% debentures of Rs.100 each on 1st April, 2009 at a discount of 5% repayable at a premium of 10% after 5 years out of the profits of the company. SINKING FUND METHOD (DEBENTURE REDEMPTION FUND METHODI I'mitations of debenture redemption reserve account. The creation of Debenture Redemption Reserve and investment to the extend of of the maturity amount when debentures are redeemed out of profits is a protecting the interests 01' the debentureholdcrs. (3) Boxer Limited issued 20,000, 12% Debenturs of Rs.50 each. Search for … Such debentures now cannot be issued. CBSE Class 12 Accountancy Redemption Of Debentures MCQs with answers available in Pdf for free download. Pass necessary Journal entries for 2 years if:‐ i) Debentures are redeemable at par after 2 years at lumpsum. Issued at Par & Redeemable at Par. (3) Jatin Limited issued 1,000, 15% debentures of Rs.100 each issued at a discount of 5% redeemable at 10% premium after 10 years. A.Ltd. Pass Journal entry for the issue. Journal Entry For Coupon Redemption. Debentures in the general course of business are issued for cash. Pass necessary Journal entries for issue and redemption of Debentures in the following cases: 20,000; 12% Debentures of Rs.50 each were issued and to be redeemed as follows: i. This is very important method of redemption of debenture. Issue of Debentures for Cash. Journal Entries When Debentures are purchased from the open market. Essentially, it is a reserve … ii) Debentures are redeemable in 2stalments equal in by drawing lot at year end at 10% premium. Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31st March, 2016 assuming that interest is payable on 30th September and 31st March and the rate of tax deducted at source is 10%. CBSE Class 12 Accounting for partnership firms fundamentals Accountancy in PDF are available for free download in myCBSEguide mobile app. [9] The rate of redemption cannot exceed 10 years from the date of issue. Z Ltd. However, this is now only a theoretical concept. Bank A/c Dr 300000 To Debentures Application A/c 300000 x Debentures issued at par and redeemable at a premium. Issue of Rs. You are required to pass necessary Journal Entries including cash transactions in the books of the company. JOURNAL ENTRIES the Debentures are On debenturcs Debentures 2. Show the journal entries. (A) Money Received in One Installment (B) Being Money Received in Two or More Installments. Record the necessary journal entries including the payment of interest and writing off the discount on issue of debentures. When Debentures are purchased for immediate cancellation; Own Debentures A/c Dr. To Bank A/c (Being own debentures purchased) 2. You are required to pass journal entries to complete the redemption of Debentures. Journal entry-Redemption of Debentures out of profits. Journal Entries When Debentures are purchased from the open market. (5 marks) 1 Preference shares are redeemed on 1-4.08 at a premium of Rs.2 per share. Accounting Treatment for Terms of Issue. Journal entry-Redemption of Debentures out of profits. ... Click on the download this file button below the pdf loader even when if … Whether you are looking for essay, coursework, research, or term paper help, or with any other assignments, it is no problem for us. Issue at Discount When the debentures are issued at below face value, such an issue of debentures is known as a discount issue. dis-tributable profits and reserves which are otherwise avail-able to pay dividend. BG. However, this is now only a theoretical concept. Prepare also a summarized Balance Sheet showing the position of the Company on completion of the redemption. ... 02 REDEMPTION OF DEBENTURES. Debentures redemption reserve has a balance of Rs.30,000 on that date. 1111 Methods of Redemption of Debentures I) Redemption of Debentures in Lump sum : All the debentures are redeemed on the redemption date specified in the terms of issue, i.e., on maturity at par or at premium. Cr. Solution: Question 8. Let us see the accounting journal entries for both of these scenarios. Q.7) XYZ Ltd. issued 200, 15 percent debentures of Rs.100 each on January 01, 2002 at discount of 10 percent redeemable at premium of 10 percent out of profits. The due date for … Mansi Ltd . 100 each at a discount of 5 % to be repaid at par w w at the end of 5 years. When new shares are issued at … 1,00,000, 9% debentures of Rs. (i)Issued at par and redeemed at a premium of 10%. Solution: Question 27. Solution: Question. 100 each at premium of 5% but redeemable at par. The Debenture Redemption Reserve has a balance of `40,000 on 31st March, 2016. debentures are to be redeemed every year draw of lots – 1,000 debenture to be redeemed every year starting on 31.12.2005. These debentures will be redeemed after 5 years with 5% premium. Make journal entries. This lets us find the most appropriate writer for any type of assignment. Required: Journal entries at the time of issue and on redemption of debenture. Closes its books of accounts on 31st December. Redemption of Preference Shares (Accounting Entries) CODES (8 days ago) In order to carry out redemption of preference shares it was decided to issue sufficient number of equity shares of Rs. This issue of debentures that happens can be of three kinds, just like an issue of shares, at par, at a discount, and at a premium.So let us take a look at all three and their respective accounting entries as well. Issued at a premium of 10% and redeemable at a premium of 20%. Complete the following Journal Entries Answer: Question 10. 6 Marks Questions. x Debentures issued at a discount and redeemable at a premium 1. Excess money received with applications was refunded. 1. Question : – ABC Ltd has 14000 8 % Debentures of Rs 60 each which are outstanding on 1st April 2014 ,and due for redemption on 31st March 2015 .The company has a Debenture redemption reserve of Rs 45000 on that date. Solution Journal entries Dr Cr Date Particulars LF Amount Amount Rs Rs 1. All the debentures were subscribed for and money was duly received. Issue of shares – basic journal entries Calls in arrears and calls in advance Issue of shares at par and at premium Over subscription of shares (Excluding pro-rata) Forfeiture and Re-issue of shares; Issue and redemption of debentures Meaning and types of debentures Difference between shares and debentures Issue of debentures for cash ii) Bonus Debentures have a face value and an interest rate. The issue was fully subscribed and the amounts were received. We write high quality term papers, sample essays, research papers, dissertations, thesis papers, assignments, book reviews, speeches, book reports, custom web content and business papers. A company issued 1,000 10% debentures of $100 each at par, payable $40 on application, and the balance on allotment. Under the following conditions a company can issue shares at a discount: 1. 100 each at a premium of 24%. When rate of interest on debentures is more than the current market rate of interest on debentures in the industry. 1,00,000, 9% debentures of Rs. ... Give journal entries and prepare cash book. Show by means of journal entries how you will record the following issues. premium converted into Equity Shares of `10 each issued at par. Student will be able to download PDF Notes related to the course after subscribing to this course. Pass journal entries when debentures have been issued at par. Debentures account Dr. Bank account Cr. A company purchased assets of Rs.990000 from another firm. x Debentures issued at a discount and redeemable at par. Answer: Question 29. iii) Debentures are redeemable by purchase from open market for … 31st March 2011. Z. Ltd. The company had a balance of ₹ 1,40,000 in its Debentures Redemption Reserve. If the maturity period between issue of debenture & redemption of debenture is … 6 Marks Questions. You are required to pass necessary journal entries for the redemption of debentu res. Record the necessary journal entries at the time of redemption of debentures. ALL YOUR PAPER NEEDS COVERED 24/7. The MCQ Questions for Class 12 Accountancy with answers have been prepared as per the latest 2021 syllabus, NCERT books and examination pattern suggested in Standard 12 by CBSE, NCERT and KVS. The debentures are redeemable at 10% premium the end of 3 years out of capital. Give journal entries both at the time of issue and redemption of debentures. Give Journal entries on issue and redemption of debentures only. A company issued Rs.1,00,000; 9% Debentures at a discount of 5% redeemable after 10 years at a premium of 10%. It was resolved to utilise the profits to repay its debentures of Rs 70,000 now redeemable at a premium of 5%. ... To Premium on Redemption of Debentures A/C (Issued Rs. Debentures issued as collateral security can be dealt in two ways (i) First Method (Without Passing Journal Entry) In this method, no journal entry is passed in the books for issue of debentures as collateral security. Debentures x A company may issue debentures with an option to convert such debentures into shares, either wholly or partly at the time of redemption: To put it in other words, the amount of capital needed for redemption of debentures is large and, hence, economic enterprises make adequate provision out of gains and accrue capital to reclaim debentures. journal-entries-problems-and-solutions-pdf 3/7 Downloaded from las.gnome.org on July 14, 2021 by guest Principles of Accounting Volume 1 - Financial Accounting-Mitchell Franklin 2019-04-11 The text and images in this book are in grayscale. This entry's effect on our capital and it will reduce by same amount. is created for debentures redeemable after a period of more than 18 months. The new issue was fully subscribed and paid for. Pass necessary Journal entries for the above transactions: (i) When company decided not to record the issue of 9 % Debentures as collateral security. Journal Entries for the redemption of Debentures: The following journal entries will be passed at the time of maturity of the debentures: Date : Particulars: L. F. Debit: Credit (i) For transferring the total amount due against debentures to the debenture holders Sinking fund means take one part of profit for repayment of debenture. 2nd Method of Redemption of Debentures - Redemption Out of Capital. Ltd. issued 2,000, 12% debentures of Rs 100 each on 1 st April 2012. Pass necessary journal entries for the redemption of debentures for the following in the books of X Ltd. X Ltd. converted Rs. In order to provide funds for redemption, the company issued 10,000 Equity Shares of ` 100 each at `110 and 1,00,000 Debentures of 10 each. of 10% redeemable at premium of 10% out of profits. Journal entries in each of the above cases are discussed below: 1. 5 0. Journal Entries: For making interest due: ... Redemption of debentures means the discharge of an obligation arising out of the contractual obligation created by the Debenture trust Deed. Applications for 6,000 debentures were received and the debentures were allotted on pro-rata basis to all the applicants. The issue was fully subscribed. Give Journal entries. XYZ Ltd. issued 6,000, 15% debentures of Rs. In the books of C Ltd. Journal Entries purchased its own debentures of the face value of Rs.2,00,000 from the open market for immediate cancellation at Rs.92. Give journal entries relating to the issue of debentures and debentures interest for the period ending March 31, 2015 assuming that interest is paid half yearly on September 30 and March 31 and tax deducted at source is 10%. Debentures issued as collateral security can be dealt in two ways (i) First Method (Without Passing Journal Entry) In this method, no journal entry is passed in the books for issue of debentures as collateral security. The redemption was duly carried out. Pass the journal entry for such redemption. Page No 10.41: Question 7: Nirbhai Chemicals Ltd. issued ` 10,00,000; 6% Debentures of ` 50 each at a premium of 8% on 30th June, 2018 redeemable on 30th June, 2019. If all the journal entries corresponding to a transaction are posted correctly, the total of the left-hand-side variables must be equal to the total of the right-hand-side variables of the algebraic equation. This is also known as the sinking fund. [4] COMPANY ACCOUNTS – (REDEMPTION OF DEBENTURES) 77 1.5 Redemption of Debentures ebentures are the long term borrowing having fixed financial charges. 100 each. [Answer: Loss on issue = Rs 30,000; bank on issue = Rs 525,000; There was a credit balance of ₹ 6,00,000 in Surplus, … 56. Redemption of debentures refers to payment of the amount of debentures by the enterprise. At the end of First Year (a) For setting aside the fixed amount of profit for redemption Profit and Loss A/c Dr. To Debenture Redemption Reserve A/c (b) For investing the amount set aside for redemption It is an invitation to public for subscription of shares or debentures. 100 each at a premium of Rs. When Debentures are purchased for immediate cancellation; Own Debentures A/c Dr. To Bank A/c (Being own debentures purchased) 2. When all the debentures are redeemed, the Debenture Redemption Reserve Account is closed by transferring to General Reserve Account. Record the necessary journal entries for the issue of debentures in the books of Zed Ltd. OR. The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Balance Sheet, Income Statement, Cash Flow Statement, Working Capital and Liquidity, Financial Ratios, Bank Reconciliation, and Payroll Accounting. 1. For cancellation of own debentures The lender may either present such debentures for redemption or sell them in the open market. The debentures were issued at face value. Redeemed 5400 12% debentures of Rs 100 each by draw of lots. The lender may either present such debentures for redemption or sell them in the open market. Purchased for immediate cancellation 930, 12% debentures of Rs 1000 each at Rs 975 each. Pass Journal entries regarding the issue and redemption of debentures, DRR and Investment without providing for the interest or loss on issue of debentures. Achieveressays.com is the one place where you find help for all types of assignments. Pass the necessary journal entries for the above transactions in the books of Kati Ltd. (ii) Pivot Ltd. issued 40,000, 11% debentures of ₹ 100 each on 1 st April, 2015. (Ignore interest on debentures and entries for provisions regarding Debenture Redemption Reserve and Debenture Redemption Investment). The following journal entries will be passed: Illustration 1: A Limited Company has a balance of Rs 1, 00,000 at the credit of Profit and Loss Account. Cheap paper writing service provides high-quality essays for affordable prices. Question 9. (e) In April 2019, a company issues 12% `10,00,000 debentures at `97 but redeemable at `104. B Ltd. purchases for immediate cancellation 2,000 of its own 12% Debentures of Rs 100 each on 1st … SOURCES OF REDEMPTION OF DEBENTURES - COMMERCEIETS.pdf - SOURCES OF REDEMPTION OF DEBENTURES Redemption of debentures means the amount of repayment to Redemption of Debentures : 5 Journal Entries Own Debentures A/c Dr. Interest A/c Dr. To Bank A/c Debentures A/c Dr. To Own Debentures A/c To Profit on cancellation A/c Basic provisions If a charge has been created on any asset or the entire assets of the company, the … Working Note:-Debentures to Preference Shares Conversion::-Amount of Debentures = … The Company has a Debenture Redemption Reserve a balance of Rs.4,00,000 on that date. A hardback color version is available. Question-63. (ii) When company decided to record the issue of 9 % Debentures as collateral security. The issue was fully subscribed. [4] (C) Ajmera Ltd. raised the following loans in the year 2016-17: [4] 12% Bank Loan from SBI on 1st April, 2016: `15,00,000 10,000; 10% Debentures of `100 each, redeemable at par in It might seem impossible to you that all custom-written essays, research papers, speeches, book reviews, and other custom task completed by our writers are both of high quality and cheap. t w .s Q.12 Pass journal entries for the following at the time of issue of debentures: (a) B Ltd. issues 30,000, 12% Debentures of Rs. Issued 2,000, 14% debentures of ₹ 100 each on January 01, 2010 at a discount of 10%, redeemable at a premium of 10% in equal annual drawings in 4 years out of profits. 100 each at a discount of 10 per cent. ii. Solution. 2. (Rs.) Mansi Ltd. had 6,000; 10% Debentures of ₹ 100 each due for redemption on 31st March, 2019. (i)Issued at par and redeemed at a premium of 10%. Pass necessary journal entries for the redemption of debentures, in the books of the company. When rate of interest on debentures is more than the current market rate of interest on debentures in the industry. The director decide to transfer the minimum amount to debentures redemption reserve on March 31,2016. First Method: In this method for issue of debentures as collateral security, no journal entry is made. Issued at par and redeemed at a premium of 10%. On redemption When 10 at ... Journal Entries Particulars 10% Debenture Redemption Investment Account Solution: [ISSUE OF DEBENTURES FOR CONSIDERATION OTHER THAN CASH] Question. When debentures are reclaimed, liability on account of debentures is being discharged. For paying premium payable on redemption of debentures. The interest is payable on 30th June and 31st December. What is meant by ‘Issue of debenture at discount and redeemable at premium? ii. On 31st March, 2003, G Ltd. had ₹ 8,00,000; 9% Debentures due for redemption. Redemption of Debentures Journal Entries – Debentures issued at par and redeemable at Premium Example 2: Ravish Ltd. issued 5,000 15% debentures of Rs. 10 each at par. The debentures are redeemable at 10% premium the end of 3 years out of capital. The journal entry for such redemption will be: Journal Entries It means we directly repay the debentures out of capital. Give Journal entries for the following: Issue of Rs. C3 NO TOPICS QUESTION TYPE MARKS COMPANY ACCOUNTS-REDEMPTION OF SHARES & DEBENTURES, SHARES BUY BACK-THEORY Journal entries The journal entry for such redemption will be: Debenture redemption reserve. The best app for CBSE students now provides accounting for partnership firm’s fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations. You can choose your academic level: high school, college/university, master's or pHD, and we will assign you a writer who can satisfactorily meet your professor's expectations. Issue of Rs. For professional homework help services, Assignment Essays is the place to be. BG. 15.Pass necessary journal entries for the issue and redemption of debentures in the following cases 20,000, 12% debentures of Rs 50 each were issued and to be redeemed as follows. (i) 2000, 5% Debentures of Rs. 4.1.3 Disadvantages of redemption of preference shares by issue of fresh equity shares The disadvantages are: (1) There will be dilution of future earnings; (2) Share-holding in the company is changed. 10 per debenture, redeemable at par. These debentures were repayable at the end of 3rd year at a premium of 10%. 1. iv) The issue of bonus debentures … The above make the redemption of debentures not out of the capital purely, as the Debenture Redemption reserve is created out of the surplus of income statement. The best app for CBSE students now provides accounting for partnership firm’s fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations. A bonus issue of equity share was made at par, two shares being issued for every five held on that date. (Issue of debentures-different terms of issue) Record journal entries in following cases: (a) Issued … Record the necessary journal entries at the time of redemption debentures. All the debentures were subscribed for and money was duly received. JOURNAL ENTRIES You are requested to pass the Journal Entries to the issue of the following debentures in the books of Damodar Valley Corporation. entries can be looked upon as the variables on the left side of an algebraic equation and credit entries, as the variables on the right side. On 31st March 2004, the cash balance amounted to $1,85,000 and Sundry Creditors stood at $87,000. iii) These debentures are redeemed on maturity. Show the journal entries to record these transactions. Question : – ABC Ltd has 14000 8 % Debentures of Rs 60 each which are outstanding on 1st April 2014 ,and due for redemption on 31st March 2015 .The company has a Debenture redemption reserve of Rs 45000 on that date. Solution: 2. Also,pass journal entries for issue and redemption of debentures. 1. Pass the journal entries. This lets us find the most appropriate writer for any type of assignment. 2. According to the terms of issue, interest on the debentures is payable half-yearly on 30 th September and 31 st March and the tax deducted at source is 10%. Illustration 21 The new discount codes are constantly updated on Couponxoo. After the redemption of the all debentures D.R.R A/c is closed by transferring it to general reserve. REDEMPTION OF DEBENTURES 8.5 3.2 Journal Entries The necessary journal entries passed in the books of a company are given below: 1. Redemption … The company decided to transfer ₹ 10,00,000 out of profits to Debentures Redemption Reserve on 31st March, 2018 and ₹ 10,00,000 on 31st March, 2019. i) Bonus debentures are issued from free reserves i.e. Cheap essay writing sercice. These applications were accepted. Example 2: Ravish Ltd. issued 5,000 15% debentures of Rs. (Ignore the treatment of loss on issue of debentures and interest.) This is calculated with sinking fund table. On 31st December, 2018, the remaining debentures were purchased @ ₹ 98 per debenture for immediate cancellation. Solution Journal entries Dr Cr Date Particulars LF Amount Amount Rs Rs 1. 9. Cheap essay writing service. On 1st April, 2014, balance in the Debenture Redemption Reserve Account stood at Rs.3,40,000. Issue of Debentures Journal Entries Practical Problem No. Payment was by issuing, 11% Debenture of Rs.100 each. Below is the list of financial accounting book as recommended by the top university in India.. Lal, Jawahar and Seema Srivastava, Financial Accounting, Himalaya Publishing House. For cancellation of own debentures Debenture issued at par redeemable at par: When. State clearly the conditions under which a company can issue shares at a discount. Debentures issued as collateral security can be dealt in two ways. Debentures can be redeemed at par, discount or premium. Capital : means amount invested in the business for the purpose of earning revenue. 4 : Rahul Ltd. has 50,000, 9% Debentures of Rs.50 each due on redemption on. The above make the redemption of debentures not out of the capital purely, as the Debenture Redemption reserve is created out of the surplus of income statement. We always make sure that writers follow all your instructions precisely. Assuming that the Company has sufficient funds in Debenture Redemption Reserve Account, pass necessary journal entries for the Assuming that the debentures were redeemed out of profits, pass necessary Journal entries for the redemption of debentures. Monga, J.R., Financial Accounting: Concepts and Applications, Mayoor Paper Backs, New Delhi. 8,000, 10% debentures were due for redemption on 31st March, 2019. fJive journal entries both at the time of issue and redemption of debentures. The lender may either present such debentures for redemption or sell them in the open market. The amount invested must be used only for the purpose of redemption of debentures. On 1st April, 2015 KK Ltd issued 500, 9% debentures, of Rs.500 each at a discount of 4%, redeemable at a premium of 5% after three years. According to the terms of issue, interest on the debentures is payable half-yearly on 30 th September and 31 st March and the tax deducted at source is 10%. 1,00,000, 9% debentures of Rs. The public applied for 800 debentures. Issued at Par & Redeemable at Par. Assuming that the debentures were redeemed out of profits , pass necessary journal entries for the redemption of debentures . Give journal entries at the time of issue and redemption of debentures if debentures are to be redeemed in lump sum at the end of 4th year. Debentures are the most common form of long-term loans that can be taken out by a corporation. Our global writing staff includes experienced ENL & ESL academic writers in a variety of disciplines. No matter what kind of academic paper you need, it is simple and affordable to place your order with My Essay Gram. (4) Issue and Redemption of Debentures Notes Class 12 Accountancy. 1. When Debentures are purchased for immediate cancellation 2. For cancellation of own debentures 3. Transfer of Gain to Capital Reserve 4. Providing Interest on Debentures 5. Payment of Interest on Debentures 6. Answer: Note: This question has been updated as per companies (Share capital and debentures) Amendment Rules, 2019. Bank A/c Dr 300000 To Debentures Application A/c 300000 Mahesh Ltd. had issued 20,000, 10% debentures of ₹ 100 each. Accounting Treatment for Terms of Issue. Cameron Ltd issued $1 000 000 of 10%, 10-year debentures on 1 January 2015. The main methods of redemption of debentures: (1) Redemption of debentures in lump-sum at maturity (a) sinking fund method; (b) Insurance policy method. 1. If you need professional help with completing any kind of homework, Success Essays is the right place to get it. This is also an important financial instrument to raise funds from the public in exchange of a fixed rate of interest. We just pass following entry after repay of debentures by cheque. The amount invested must be used only for the purpose of redemption of debentures. Let us now see the journal entries for the six different scenarios of the terms of the issue. Illust. Give journal entries for the issue and redemption. that redemption debentures is not being carried out of the not to redeem the thc to of The entries are : Scanned with CamScanner . ... 1,000 14% Debentures of Rs. The directors decided to transfer the minimum amount to Debenture Redemption Reserve on 31.3.2016. Q56. Journal entries at the time of redemption of debentures: Redemption of Debentures at Par (a) Debentures A/C Dr To Debentureholders’ A/C (Being debentures due for redemption) (b) Debentureholders’ A/C Dr To Bank A/C (Being amount paid on redemption) Redemption of Debentures at Premium (a) Debentures A/C Dr Solution Professional academic writers. These are the entries passed for the issue of the shares in these different cases. iii. D.R.R. A Company Ltd issued 5,000; 10% debentures of $/₹/Rs 100 each at a premium of Rs 10 per debenture. Let us now see the journal entries for the six different scenarios of the terms of the issue. You can get the best discount of up to 77% off. Faith and Belief Ltd has total redeemable debentures of ₹ 5,00,000.
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