`{:("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.

Explanation

(i) Dr. surplus, i.e., Balance in Statement of Profit and Loss A/c and Cr. Debentures Redemption Reserve A/c by Rs. 1,00,000.
(ii) Dr. Debentures Redemption Investment A/c and Cr. Bank A/c by Rs. 45,000.
(iii) Dr. `9%` Debentures A/c and Cr. Debentureholder' A/c by Rs. 3,00,000.
(iv) Dr. Debentureholders' A/c and Cr. Bank A/c by Rs. 3,00,000
(v) Dr. Debentures Redemption Reserve A/c and Cr. General Reserve A/c by Rs. `75,000^(**)`.
** Amount proportionate to `50%` Debentures redeemed transferred.