A company took a loan of ₹ 4,00,000 from Bandhan Bank Ltd. and issued 8% Debentures of ₹ 4,00,000 as a collateral security. Explain how will the issue of debentures be dealt with in the books of the company.
Nirbhai Chemicals Ltd. Issued RS. 10,00,000 , 6% Debentures of Rs. 50 each at a premium of 8% on 30th june, 2018 redeemable on 30th June, 2019. The issue was fully subcribed. Pass Journal entries for issue and redemption of debentures. How much amount should be transferred. to Debentures Redemption Reserve before redemption of debentures ? Also, state how much amount should be invested in specified securities ?
