What are the two specified securities for debenture redemption investment?

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Solution

Specified securities for debenture redemption investment are:
1. In deposit with any Scheduled Bank, which is free from any charge.
2. In the unencumbered securities of the Central Government or any State Government

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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?

Q. For debenture redemption investment, 15% of redemption value should be invested before of the same financial year.

What is the journal entry we pass for investing money in debenture redemption fund?

Alpha Ltd. has 10,000, $8 %$ Debentures of Rs 100 each due for redemption on 31st March 2018. Debenture Redemption Reserve has a balance of Rs 1,90,000 on 31st March,2017. It was decided to invest the required amount towards Debenture Redemption Investment. Investments were realised at $104 %$ less $0.5 %$ brokerage and debentures were redeemed. Record the necessary entries for the redemption of debentures.

On January 1,2011, the following balances appeared in the books of Z Ltd

$\begin{matrix} Items & Rs. 6 % Debentures & 1, 00, 000 Debentures Redemption Reserve Fund & 80, 000 Debentures Redemption Reserve Fund Investments & 80, 000 \end{matrix}$

The investments consisted of 4 % Government securities of the face value of Rs. 90,000.
The annual instalment was Rs. 16,400. On December 31, 2011, the balance at Bank was Rs. 26,000 (after receipt on interest on Debenture Redemption Reserve Fund Investment). Investments were realised at 92 % and the Debentures were redeemed. The interest for the year had already been paid.
Show the ledger accounts affecting redemption.

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What are the two specified securities for debenture redemption investment?

Specified securities for debenture redemption investment are: 1. In deposit with any Scheduled Bank, which is free from any charge. 2. In the unencumbered securities of the Central Government or any State Government

Specified securities for debenture redemption investment are:
1. In deposit with any Scheduled Bank, which is free from any charge.
2. In the unencumbered securities of the Central Government or any State Government