Question

11. (Issue of debentures/Redemption in instalments and at premium) On 1st April, 2011
Reebock Ltd; issued 8,000 10% Debentures of 100 each at par, redeemable at 5% premium
in two installments commencing from 30th September, 2015. It was resolved to transfer
required amount to Debenture Redemption Reserve in three equal installments commencing
from 31st March, 2012. The required investment was made in Govt. Securities at 9% p.a.
Journalise the transactions from 1st April, 2011 to 30th September, 2015 ignoring interest on
debentures, TDS and loss on issue of debentures.​

Answer 1

Explanation:

11. (Issue of debentures/Redemption in instalments and at premium) On 1st April, 2011

Reebock Ltd; issued 8,000 10% Debentures of 100 each at par, redeemable at 5% premium

in two installments commencing from 30th September, 2015. It was resolved to transfer

required amount to Debenture Redemption Reserve in three equal installments commencing

from 31st March, 2012. The required investment was made in Govt. Securities at 9% p.a.

Journalise the transactions from 1st April, 2011 to 30th September, 2015 ignoring interest on

debentures, TDS and loss on issue of debentures.