[ISC] Q 30 Redemption of Debenture TS Grewal (2024-25)
Solution of question number 30 of Redemption of Debenture Ts Grewal class 12 ISC Board (2024-25)
F & R Ltd. issued 5,000, 9% Debentures of ₹ 100 each at par on 1st April, 2020 redeemable at par on 31st March, 2022. The company transferred the required amount to DRR out of Surplus, i.e., Balance in Statement of Profit & Loss on 31st March, 2021. It invested the specified amount in fixed deposit with Canara Bank on 1st April, 2021 earning 8% interest. Interest is paid on debentures annually on 31st March.
Pass Journal entries for issue and redemption of debentures, DRR, investment and interest on debentures.
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