Redemption of debenture journal entry
WebFeb 20, 2016 · 8.Pass the necessary journal entries for the issue and redemption of debentures in the following cases: (i)15,000,9% debentures of Rs 250 each issued at 5% premium, repayable at 15% premium. (ii)2,00,000,12% debentures of Rs 10 each issued at 8% premium, repayable at par. (All India 2011) Ans. WebMeaning of Redemption of Debentures. It means repayment of the number of debentures to the debenture holders. Debentures can be redeemed either at par or at a premium. The …
Redemption of debenture journal entry
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WebDec 8, 2024 · DRR – Under Section 71 (4) and Rule 18 (7) (b): –. Debenture Redemption Reserve (DRR) is a reserve set aside out of profits available for distribution as a dividend for the purpose of redemption of debentures. The amount transferred to Debentures Redemption Reserve (DRR) Before the process of redemption of debentures begins. WebMar 11, 2024 · Download revision notes for Company Accounts – Redemption of Debentures class 12 Notes and score high in exams. These are the Company Accounts – Redemption of Debentures class 12 Notes prepared by team of expert teachers. The revision notes help you revise the whole chapter 9 in minutes. Revision notes in exam …
Web8.Pass the necessary journal entries for the issue and redemption of debentures in the following cases: (i)15,000,9% debentures of Rs 250 each issued at 5% premium, repayable at 15% premium. (ii)2,00,000,12% debentures of Rs 10 each issued at 8% premium, repayable at par. (All India 2011) Ans. WebRedemption of Debentures Sometimes, the company asks for the whole amount on application only but mostly the company does it on an instalment basis. Debentures can …
WebApr 1, 2015 · “Optional Redemption Amount” means the sum of (a) 120% of the then outstanding principal amount of the Debenture, (b) accrued but unpaid interest and (c) all liquidated damages and other amounts due in respect of the Debenture. “Optional Redemption Date” shall have the meaning set forth in Section 6(a). Web@ ₹ 102 per debenture and cancelled these debentures immediately. On 31st December, 2024, the remaining debentures were purchased @ ₹ 98 per debenture for immediate cancellation. You are required to pass necessary journal entries for the redemption of debentures. (Ignore interest on debentures and entries for provisions regarding
WebRedemption takes place from profits or from a fresh batch of debentures. The following methods are used in redeeming debentures: 1. By conversion into equity shares and new debentures 2. By annual drawing in instalments 3. By purchasing debentures in an open market 4. Lump sum payment on the maturity date 5. Utilizing the call or put option 15.
Webdebenture redemption reserve account out of the profits of the company available for payment of ... The journal entries to be passedwill be the following: Rs. Rs. 8% Debentures A/c Dr. 50,000 To Own Debentures A/c 48,000 To Profit on cancellation of debentures 2,000 tice joelWebApr 10, 2024 · Class 12 Account Question Paper 2080 Solution. Hello everybody, I have provided Class 12 Account Question Paper 2079 with answer. battle tanks - war tank gamesWebAlso, pass Journal entries for issue and redemption of debentures. Solution: Question 4. On 31st March, 2003, G Ltd. had 8,00,000; 9%Debentures due for redemption. The company had a balance of Rs.1,40,000 in its Debenture Redemption Reserve. Pass necessary Journal entries for redemption of debentures Solution: Question 5. Solution: Question 6. battle tapes bandcampWebWhen all the debentures are redeemed, the Debenture Redemption Reserve Account is closed by transferring to General Reserve Account. The following journal entries will be passed: Illustration 1: A Limited Company has a balance of Rs 1, 00,000 at the credit of … (ii) Amount transferred to Capital Redemption Reserve and pass Journal … tiče ili tićeWebSep 20, 2024 · Strong Ltd. issued 10,000, 14% debentures of Rs.100 each on 1st April, 2009 at a discount of 5% repayable at a premium of 10% after 5 years out of the profits of the company. On 1st April, 2014, balance in the Debenture Redemption Reserve Account stood at Rs.3,40,000. debentures. battletech wiki sarnaWebThe profit or loss on redemption of debenture should be credited or debited to Profit and Loss on redemption of Debenture Account. The amount paid as interest is debited to Interest Account. Illustration 1: ADVERTISEMENTS: On 1st January 2004, a Company issued Rs 20, 00,000 7% Debentures at 5% discount repayable in five years at par. ticenogoodWebdebenture redemption reserve account out of the profits of the company available for payment of dividend and the amount credited to such account shall not be utilised by the … battletech wiki game