[ISC] Q 22 Redemption of Debenture TS Grewal (2024-25)

Solution of question number 22 of Redemption of Debenture Ts Grewal class 12 ISC Board (2024-25)

Mansi Ltd, an unlisted (Non-NBFC/HFC) company, had 6,000; 10% Debentures of ₹ 100 each due for redemption on 31st March, 2022. As per the terms of issue, debentures were redeemed out of profits.

Pass necessary Journal entries for the redemption of debentures. There was a credit balance of ₹ 6,00,000 in Surplus, i.e., Balance in Statement of Profit & Loss.

Solution:-