Question

On 1^st July, 2018, Astrex Ltd. (an unlisted construction company) issued 1,000, 8% Debentures of ₹ 100 each, to be redeemed at a premium of 6% on 31^st December, 2020.

The company transferred ₹ 6,000 to the Debenture Redemption Reserve Account on 31^st March, 2019, and the balance on 31^st March, 2020.

The company met the requirement regarding the purchase of Debenture Redemption Investment. The debentures were redeemed on the due date.

You are required to prepare:

• Debenture Redemption Reserve Account for the years 2019-20 and 2020-21.
• Debenture holders Account for the year 2020-21.

Note: Ignore interest on debentures due to the debenture holders.

Answer 1

Debenture Redemption Reserve Account
Date	Particulars	Amount (₹)	Date	Particulars	Amount (₹)
2019			2019
Mar. 31	To Balance c/d	6,000	Mar.31	By Statement of P/L	6,000
		6,000			6,000
2020			2019
Mar. 31	To Balance c/d	10,000	Apr. 1	By Balance b/d	6,000
			2020
			Mar. 31	By Statement of P/L	4,000
		10,000			10,000
2020			2020
Dec. 31	To General Reserve A/c	10,000	Apr. 1	By Balance b/d	10,000
		10,000			10,000

 

Debentureholders Account
Date	Particulars	Amount (₹)	Date	Particulars	Amount (₹)
2020			2020
Mar. 31	To Bank A/c	1,06,000	Dec. 31	By 8% Debenture A/c	1,00,000
				By Premium on Redemption A/c	6,000
		1,06,000			1,06,000