[ISC] Q 29 Redemption of Debenture TS Grewal (2024-25)

Solution of question number 29 of Redemption of Debenture Ts Grewal class 12 ISC Board (2024-25)

Manish Ltd., an unlisted (Non-NBFC/HFC) company, issued ₹ 40,00,000; 8% Debentures of ₹ 100 each on 1st April, 2021. The terms of issue stated tht the debentures are to be redeemed at a premium of 5% on 30th June, 2023. The company decided to transfer ₹ 10,00,000 out of profits to Debentures Redemption Reserve on 31st March, 2022 and ₹ 2,00,000 on 31st March, 2023.

Pass Journal entries regarding the issue and redemption of debentures, DRR and Investment without providing for the interest or loss on issue of debentures.

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