Question

Chandan Ltd. issued 5,000; 8% Debentures of 100 each on 1 st April 2015
redeemable at a premium of 5% as under:
On 31 st March, 2021 - 2,500 Debentures
On 31 st March, 2022 - 1,250 Debentures
On 31 st March, 2023 - 1,250 Debentures
The Board of Directors has also decided to transfer the required amount to
Debenture Redemption Reserve (DRR) in four equal annual installments starting
from 1 st April 2017.
Record the necessary Journal entries at the time of issue and at the time of
redemption of debentures and creation of DRR. Prepare ledger accounts.

Answer 1

Answer:

Chandan Ltd. issued 5000; 8 % Debentures of 100 each on 1 st ... on 1 st April 2015 redeemable at a premium of 5% as under: On 31 st March, 2021 - 2,500 Debentures