[ISC] Q 45 Redemption of Debenture TS Grewal (2024-25)

Solution of question number 45 of Redemption of Debenture Ts Grewal class 12 ISC Board (2024-25)

Hemco Ltd. an unlisted (Non-NBFC (HFC) company issued 10,000; 10% Debentures of ₹ 100 each at par on 1st April, 2019 redeemable at 5% premium in three yearly instalments by draw of lots as follows:

The company complied with the legal requirement with respect to DRR and investment (made in Government Securities on 1st April).

Pass Journal entries for Issue and Redemption of debentures.

Solution:-