Journal in the books of Company | ||||
Date | Particulars | Debit | Credit | |
01-10-14 | 12% Debentures (300 x 100) | Dr. | 30,000 | |
To Bank (300 x 93) | 27,900 | |||
To Profit on Cancellation of Debentures | 2,100 | |||
(Being 300 debentures purchased for immediate cancellation) | ||||
31-03-15 | Debenture Interest A/c (700 x 100) x 12% | Dr. | 8,400 | |
To Debenture Holders A/c | 8,400 | |||
(Being Debenture interest on remaining debentures due) | ||||
Debenture Holders A/c | Dr. | 8,400 | ||
To Bank A/c | 8,400 | |||
(Being Interest on remaining 700 debentures paid) | ||||
Profit on Cancellation of Debenture A/c | Dr. | 2,100 | ||
To Capital Reserve | 2,100 | |||
(Being Profit on redemption transferred to capital reserve) |