Question

Record necessary journal entries regarding issue and redemption of debentures. Ignore
entries relating to writing off loss on issue of debentures and interest paid thereon.
Ans. Debenture Redemption Investment 10,50,000 on 30th April, 2013;
Debenture Redemption Reserve amounting to 17,50,000 will be transferred to
General Reserve.]
Q. 12. Kuber Ltd. on 1st April 2010 acquired assets of the value of 37,00,000 and
liabilities worth $80,000 from Varun Ltd., at an agreed value of 36,30,000. Kuber Ltd.
issued 10% Debentures of 100 each at a premium of 5% in full satisfaction of
purchase consideration. The debentures were redeemable on 31st March, 2015 at a
premium of 4%. Pass journal entries to record the above including redemption o
debentures.
[Ans. Goodwill *10,000; Debentures issued : 6,000 Debentures of 100 each
Debenture Redemption Investment 90,000; Debenture Redemption Reserve create
for 1,50,000 and transferred to General Reserve.]
Redemntion of Debentures in Instalments by Drawing of Lots :​

Answer 1

Explanation:

premium of 4%. Pass journal entries to record the above including redemption o

debentures.

[Ans. Goodwill *10,000; Debentures issued : 6,000 Debentures of 100 each

Debenture Redemption Investment 90,000; Debenture Redemption Reserve create

for 1,50,000 and transferred to General Reserve.]

Redemntion of Debentures in Instalments by Drawing of Lots :