Question

100 each on July 1, 2011 redeemable at a premium of 5% as under : `"On March 31st, 2015 30,000 Debentures"` `"On March 31st, 2016 25,000 Debentures"` `"On March 31st, 2017 35,000 Debentures"` It was decided to transfer to Debenture Redemption Reserve Rs.10,00,000 on March 31, 2012, Rs.4,00,000 on March 31, 2013 and the balance on March 31, 2014. Record necessary journal entries ignoring for interest.​

Answer 1

Answer:

Investment made for Rs.4,50,000 on 30th April 2014,Investment encashed for Rs.75,000 on 31st March, 2015,Investment made for Rs.1,50,000 on 30th April 2016, andInvestment encashed for Rs.5,25,000 on 31st March, 2017.

• Amount transferred to Debenture Redemption Reserve on March 31, 2014 Rs.8,50,000, DRR transferred to General Reserve on 31st March 2015 Rs.7,50,000, On 31st March 2016 Rs.6,25,000, and on 31st March 2017 Rs.8,75,000.