Redeemable Debentures

Faith and Belief Ltd has total redeemable debentures of ₹ 5,00,000. It decides to redeem these debentures in two instalments of ₹ 3,00,000 and ₹ 2,00,000 on December 31st 2018 and March 31st 2020 respectively. Assuming that the Company has sufficient funds in Debenture Redemption Reserve Account, pass necessary journal entries for the year ending March 31st 2020.

SRCC Ltd. Has 20,000,, 9% Debentures of Rs. 100 each outstanding as on 31st March, 2018. These debentures are due for redemption on 31st March, 2019 at a premium of 10% . The company had a credit balance of Rs. 22,00,000 in its Surplus, i.e., Balance in Statement of Profit and Loss. Instead of declaring a dividend it decided to redeem the debentures. Pass the necessary Journal entries in the books of the company for the redemption of debentures.

{:("On 31 st March, 2018, W Ltd. had the following balances in its books :",,," Rs."),(9% "Debentures",,,"6,00,000"),("Debentures Redemption Reserve",,," 50,000"),("surplus, i.e., Balance in Statement of Profit and Loss",,,"3,00,000"):} On that date, the company decided to transfer Rs. 1,00,000 to Debentures Redemption Reserve. it also decided to redeem debentures of Rs. 3,00,000 on 30th June, 2018. Pass necessary Journal entries in the books of the company.

on 1st April, 2018, Sunshine Ltd. Issed ₹ 10,00,000, 15% Debentures of ₹ 100 each at 8% discount payable: ₹ 40 on application, and The balance on allotment. These debentures were to be redeemed at a premium of 5% after five years. All the debentures were subcribed for by the public. Interest on these debentures was to be paid half-yearly which was duly paid by the company. You are required to: (i) Pass Journal entries in the first year of debenture issue (including entries for debenture interest.) (ii) Prepare 15% Debentures Account for the year ending 31st March, 2019.