On 1st January, 2016 a Public Limited Company issued 25,000; 10% Debentures
of 100 each at par which were repayable at a premium of 10% on 31st December
2019. On the date of maturity, the company redeemed the above 10% Debentures
as per the terms of issue. Surplus, i.e., Balance in Statement of Profit and Loss
shows a credit balance of 30,00,000 on this date.
Pass necessary Journal entries in the books of the Company only for the redemption
of Debentures, as per the Companies Act, 2013.
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