Question

On 1st January 2013, Nihan construction ltd made an issue of RS 500000 debenture at a discount of 5%. As per the terms of issue the company redeem the debentures out of profit debentures at par by drawing of lots in any year after 31.12.14. RS 100000 debentures are redeemed on 31.12.15 and further RS 200000 debentures on 31.12.16. show journal entries regarding redemption​

Answer 1

Answer:

Bank A/C Dr. - 500000

To debenture A/C - 500000