What is the treatment of interest on investment account at the time of receipt of interest on debenture redemption fund investment?

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The following balances appeared in the books of Z.Ltd. on April 01, 2016

	Rs
12% Debentures	1,50,000
Debentures Redemption Fund	1,25,000
Debentures Redemption Fund Investment	1,25,000
(Represented by Rs 1,47,500, 3% Govt. Securities)	1,25,000

The annual instalment added to the fund is Rs 20,575. On March 31, 2017, the bank balance after the receipt of interest on the investment was Rs 39,100. On that date, all the investments were sold at 83 per cent and the debentures were duly redeemed.

Show the necessary ledger accounts for the year 2016-17.

On April 01, 2016 the following balances appeared in the books of Z. Ltd.:

	Rs
6% Debentures	1,00,000
Debentures Redemption Reserve Fund	80,000
D.R. Reserve Fund Investments	80,000

The investments consisted of 4% Government securities of the face value of Rs 90,000.

The annual instalment was Rs 16,400. On March 31, 2017, the balance at Bank was Rs 26,000 (after receipt of interest on D.R.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.

The following balances appeared in the books of A.Ltd. on April 01, 2017

	Rs
12% Debentures	4,00,000
Debentures Redemption Fund	3,60,000
Debentures Redemption Fund Investment	3,60,000
Securities Premium	30,000
Bank Balance	1,00,000

On April 01, 2017, the company redeemed all the debentures at 105 per cent out of funds raised by selling all the investments at Rs 3,48,000. Prepare the necessary ledger accounts.

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

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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