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PRITHVI Ltd had 19,200 12% Debentures of 100 each outstanding as on 1st April, 2019, redeemable on 31st March, 2020. On that day, Debenture Redemption
PRITHVI Ltd had 19,200 12% Debentures of 100 each outstanding as on 1st April, 2019, redeemable on 31st March, 2020. On that day, Debenture Redemption Reserve was 17,97,600 represented by 2,400 own debentures purchased at the average price of 99 ex and 9% Govt. Bonds ( face value 15,84,000). The annual installment was 68,160. On 31st March, 2020, the investments were realized at 98% and the debentures were redeemed. Pass the necessary journal entries and Prepare 12% Debentures Account and Debenture Redemption Reserve Account.
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