Manish Ltd. issued Rs. 40,00,000, 8% debentures of Rs. 100 each on 1st april 2007. The term of issue stated that the debentures were to be redeemed at a premium of 5% on 30th june, 2009. The company decided to transfer out of profits Rs. 10,00,000 to debenture redemption reserve on march 31st 2008 and Rs. 10,00,000 on march 31st 2009.
Pass necessary journal entries regarding the isuue and redemption of debentures without providing for either the interest or loss on issue of debentures,

1.4.07 Bank ac dr.
To 8% Deb. Application and allotment ac 40, 00, 000

1.4.07 8% Deb. Application and allotment ac Dr. 40, 00, 000
Loss On issue of debs ac Dr. 2, 00, 000
To 8% Deb. ac 40, 00, 000
To Premium on redemption of Deb. ac 2, 00, 000

31.3.08 and 31.3.09 Surplus in statement of Profit and Loss ac Dr. 10, 00, 000
To DRR ac 10, 00, 000

30.6.09 8% Deb. ac Dr. 40, 00, 000
Premium on redemption of Deb. ac Dr. 2, 00, 000
To Deb. holder ac 42, 00, 000

30.6.09 Deb. Holders ac Dr. To Bank ac 42, 00, 000

30.6.09 DRR ac To General Reserve ac 20, 00, 000