[ISC] Q 27 Redemption of Debenture TS Grewal (2024-25)
Solution of question number 27 of Redemption of Debenture Ts Grewal class 12 ISC Board (2024-25)
On 31st March, 2022, Ekta Ltd., an unlisted company, not being a NBFC or HFC, had the following balances in its books:
| ₹ | |
| 9% Debentures | 6,00,000 |
| Debenture Redemption Reserve | 30,000 |
| Surplus, i.e., Balance in Statement of Profit & Loss | 3,00,000 |
On that date, the company transferred ₹ 30,000 to Debentures Redemption Reserve. It redeemed debentures of ₹ 3,00,000 on 30th June, 2022.
Pass necessary Journal entries in the books of the company for the above.
Solution:-
Note:- Amount proportionate to 50% Debentures redeemed transferred. Alternatively, DRR may be transferred to General Reserve when all the debentures have been redeemed.
