Question

Shobha Ltd. decided to redeem its 8,000, 9% debentures of 100 each, issued at a discount of 9%, redeemable at a premium of 10%. The minimum amount that can be transferred to Debenture Redemption Reserve will be

Answer 1

Answer:

Solution On 1st April, 2013, Rayon Ltd. Issued 2,000, 9% Debentures of ` 100 Each at a Discount of 10%, Redeemableat Par on 31st March, 2017. the Issue Was Fully Subscribed. to Meet the Provisions of the Concept: Accounting Entries at the Time of Issue When Debentures Are Redeemable at Par and Premium.

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