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ABC Ltd. Issued 2,000, 10% Debentures of...

ABC Ltd. Issued 2,000, `10%` Debentures of Rs. 1,000 each at par on 1st April, 2016 redeemable in equal annual drawings by draw of lots in 2 years on 31st March, 2018 and 31st March, 2019.
The company decided to transfer to Debentures Redemptions Reserve amount as prescibed in law on 31st March, 2017. Investment was made in specified securities on 1st April, 2017 and 2018 respectively.
Pass Journal entries for DRR and redemption of debentures assuming the investment was realised each time the debentures were redeemed. (Ignore Interest)

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JOURNAL OF ABC LTD.


alternatively, company may decide to transfer DRR to General Reserve when all debentures have been redeemed, i.e., on 31st March, 2019.
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TS GREWAL-COMPANY ACCOUNTS REDEMPTION OF DEBENTURES-EXERCISE
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