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Question
Ronny Ltd. (an unlisted construction company) redeems its 7,000, 10% Debentures of ₹100 each at a premium of 5% in instalments, as follows:
| Date of Redemption | Debentures to be redeemed |
| 31st March, 2022 | 2,000 |
| 31st March, 2023 | 3,000 |
| 31st March, 2024 | 2,000 |
You are required to prepare for the year 2023-24:
- General Reserve Account.
- Debenture holders’ Account. (Ignore interest on Debentures).
Ledger
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Solution
| Dr. | General Reserve A/c | Cr. | |||
| Date | Particulars | Amount (₹) | Date | Particulars | Amount (₹) |
| 2024 | 2024 |
||||
| Mach 31 | To Balance c/d | 70,000 | April 1 | By Balance b/d | 50,000 |
| Mach 31 | By DRR | 20,000 | |||
| 70,000 | 70,000 | ||||
| Dr. | Debenture holders’ A/c | Cr. | |||
| Date | Particulars | Amount (₹) | Date | Particulars | Amount (₹) |
| 2024 | 2024 |
||||
| Mach 31 | To Bank A/c | 2,10,000 | Mach 31 | By 10% Debentures A/c | 2,00,000 |
| Mach 31 | By Premium on Redemption of Debentures A/c | 10,000 | |||
| 2,10,000 | 2,10,000 | ||||
shaalaa.com
Creation of Debenture Redemption Reserve
Is there an error in this question or solution?
