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(Transfer of DRR to General Reserve on r...

(Transfer of DRR to General Reserve on redemption of all the debentures).
On 1st April 2017, Base Ltd. Issued Rs. 40,00,000, `10%` Debentures of Rs. 100 each at a premium of `5%` and redeemable at a premium of `10%` in equal annual drawing by draw of lots in 2 years starting from 31 st March, 2018. It also decided to transfer amount of DRR to General Reserve after redemption of all the debentures, at the end of that Financial Year. Pass the necessary Journal entries during the years of Issue and Redemption of Debentures. Ignore interest paid on Debentures and interest received in Debentures Redemption Investment.

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JOURNAL OF BASE LTD.

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Bule Ltd. Issued ₹ 8,00,000, 9% Debentures of ₹ 100 each at per and redeemable at 10% premium at the end of sixth year. Pass Journal entries for issue of debentures.

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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