Which account is to be debited while encashing investment made out of Debenture Redemption Reserves?

Profit or loss A/c

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Debenture Redemption Reserve A/c

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Debenture Redemption Investment A/c

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Bank A/c

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Solution

The correct option is D
Bank A/c

Bank A/c is to be debited while encashing investment made out of Debenture Redemption Reserves.

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Q. The account is to be debited while encashing investment made out of debenture redemption reserves.

Which account is to be credited while encashing investment made out of Debenture Redemption Reserves?

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

Mona Ltd., has issued 20,000, $9 %$ Debentues of Rs 100 each of which half the amount is due for redemption on March 31st 2018. It was decided to invest the required amount towards Debenture Redemption Investment. The company has in its Debenture Redemption Reserve Account a balance of Rs 4,40,000 on 31st March, 2017. Record the necessary journal entries for the Redemption of Debentures.

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.

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Which account is to be debited while encashing investment made out of Debenture Redemption Reserves?

The correct option is D Bank A/c Bank A/c is to be debited while encashing investment made out of Debenture Redemption Reserves.

The correct option is D
Bank A/c

Bank A/c is to be debited while encashing investment made out of Debenture Redemption Reserves.