Question

On 31st March, 2003, G Ltd. had ₹ 8,00,000; 9% Debentures due for redemption. The company had a balance of ₹ 1,40,000 in its Debentures Redemption Reserve. Pass necessary journal entries for redemption of debentures.

Answer 1

Answer:

On 31st March, 2003, G Ltd. had ₹ 8,00,000; 9% Debentures due for redemption. The company had a balance of ₹ 1,40,000 in its Debentures Redemption Reserve. Pass necessary journal entries for redemption of debentures. I will be there at your question my number is 9625836910

Answer 2

The necessary journal entries for redemption of debentures are prepared below:

Explanation:

Given,

On 31st March, 2003, G Ltd. had ₹ 8,00,000;

9% Debentures due for redemption.

The company had a balance of ₹ 1,40,000 in its Debentures Redemption Reserve.

Amount for DRR (25% of Debentures Issued)

$=8,00,000 \times \frac{25}{100}=2,00,000$

Less: Existing amount in $\mathrm{DRR}=1,40,000$

DRR to be created for redemption $=60,000$

Notes:

1. No interest has been calculated on Investments as rate of interest is not provided.

2. Entries for interest on debentures have been ignored, however, the entries have been provided for reference.

The necessary journal entries for redemption of debentures are prepared below: