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why the first entry is 800 instead 1000? Example 4- $1,000 debentures were redeemed at a premium of 20%, with no new issue of shares
why the first entry is 800 instead 1000?
Example 4- $1,000 debentures were redeemed at a premium of 20%, with no new issue of shares 1. Debentures 800 ? Debenture Redemption 800 (For declaration of redemption) 2. Profit and Loss Appropriation 1000 Debenture Redemption Reserve 1000 (For transfer to debenture redemption reserve) 3. Profit and Loss Appropriation 200 Debenture Redemption 200 (Being premium on redemption) 4. Debenture Redemption 1200 Bank 1200 (Being redemption of debentures) Step by Step Solution
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