What is the treatment of debenture redemption fund while transferring amount to sinking fund?

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Describe the steps for creating Sinking Fund for redemption of debentures.

What entries for the redemption of debentures will be done when : (a) debentures are redeemed by annual drawings out of profits; (b) debentures are redeemed by drawing a lot out of capital; and (c) debentures are redeemed by purchasing them in the open market when sinking fund for the redemption of debentures is not maintained − (i) when out of profit, and (ii) when out of capital?

Under Sinking Fund method, Sinking Fund or Debenture Redemption Fund of _______ the amount of present value of redemption amount of debentures is created out of profits every year.

Q. Difference between debenture redemption reserve and sinking fund

Which account is to be debited to transfer interest on investment to debenture redemption fund?

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