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Redemption of Debentures

The journal e...

Question

The journal entry for Premium on redemption of debentures while transfer to debentureholders-

A

None of these

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B

1840

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C

1600

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D

1000

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Solution

The correct option is C
1600

The journal entry for Premium on redemption of debentures while transfer to debentureholders-
Debentures A/c Dr
Premium on redemption of debentures Dr
To Debentureholders A/c

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Similar questions

Q. Nirbhai Chemicals Ltd. issued ₹ 10,00,000; 6% Debentures of ₹ 50 each at a premium of 8% on 30th June, 2018 redeemable on 30th June, 2019. The issue was fully subscribed. Pass Journal entries for issue and redemption of debentures. How much amount should be transferred to Debentures Redemption Reserve before redemption of debentures? Also, state how much amount should be invested in specified securities?

The journal entry for recognition of premium on redemption is :

Q. Venus Ltd. had 9,000, 9% Debentures of ₹ 100 each due for redemption . These debentures are to be redeemed in 3 equal installments (starting from 31st March,2015) at a premium of 10%. The company had a balance of ₹ 25,000 in the Debentures Redemption Reserve .
Pass necessary entries for redemption of debentures assuming that company transfer the balance of DRR to General Reserve after redeeming all the debentures.

Q. Apollo Ltd.issued 21,000;8% Debentures of ₹ 100 each on 1st April, 2011 redeemable at a premium of 8% on 30th June , 2017. The company decided to transfer the required amount to Debentures Redemption Reserve in three equal annual installments starting with 31st March, 2015. Required investment was made in Government Securities on 30th April, 2017. Ignore interest on debentures and also investment .
Pass necessary journal entries regarding issue transfer to DRR , investment, and redemption of debentures.

Q. Apollo Ltd.issued 21,000; 8% Debentures of ₹ 100 each on 1st April, 2013 redeemable at a premium of 8% on 30th June, 2019. The company decided to transfer the required amount to Debentures Redemption Reserve in three equal annual instalments starting with 31st March, 2017. Required investment was made in Government Securities on 30th April, 2019. Ignore interest on debentures and also investment.
Pass necessary Journal entries regarding issue, transfer to DRR, investment, and redemption of debentures.

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