Debentures redemption
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Dear Student, 
Journal entry for redemption has been provided hereunder :-
 

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
31st Mar 2016	Profit & Loss A/c (750,000 x 25% x 1/3)	Dr.		62,500
	To Debentures Redemption Reserve  A/c				62,500
	(Amount transferred to DRR)
31st Mar 2017	Profit & Loss A/c  (750,000 x 25% x 1/3)	Dr.		62,500
	To Debentures Redemption Reserve  A/c				62,500
	(Amount transferred to DRR)
31st Mar 2018	Profit & Loss A/c  (750,000 x 25% x 1/3)			62,500
	To Debentures Redemption Reserve  A/c				62,500
	(Amount transferred to DRR)
30th Apr 2018	Debenture Redemption Investment A/c (750,000 x 15%)	Dr.		112500
	To Bank A/c				112500
	(Amount invested in specified security)
	Bank A/c (112,500 + 5,063)	Dr.		117563
	TDS Payable Dr. (5625 x 10%)	Dr.		562
	To Int. on Debenture Redemption Investment A/c (112,500 x 5%)				5625
	To  Debenture Redemption Investment A/c				112500
	(Debenture Redemption Investment realised)
	6% Debenture A/c (7500 x 100)	Dr.		750,000
	Premium on Redemption of Debentures A/c (750,000 x 15%)	Dr.		112500
	To Debenture holder’s  A/c				862500
	(Debenture due for redemption)
	Debenture holder’s  A/c	Dr.		862,500
	To  Bank A/c				862,500
	(Debentures redeemed)
	Debenture Redemption Reserve A/c	Dr.		187,500
	To General Reserve A/c				187,500
	(Amount invested in specified security)

Regards