Godrej Ltd., and unlisted (Non-NBFC/HFC) company, has 20,000; 7% Debentures of ₹ 100 each due for redemption out of profits on 31st August, 2021. It has a balance of ₹ 7,50,000 in Debentures Redemption Reserve Account as on 31st March, 2020. Investment, as required by the Companies Act, 2013 is made on 1st April, 2021 in fixed deposit bearing interest @ 6% p.a. Bank deducted TDS @ 10% on its maturity.

Pass Journal entries for redemption of debentures.a

Anurag Pathak Changed status to publish November 4, 2023