Manish Ltd., an unlisted (Non-NBFC/HFC) company, issued ₹ 40,00,000; 8% Debentures of ₹ 100 each on 1st April, 2019. The terms of issue stated tht the debentures are to be redeemed at a premium of 5% on 30th June, 2021. The company decided to transfer ₹ 10,00,000 out of profits to Debentures Redemption Reserve on 31st March, 2020 and ₹ 2,00,000 on 31st March, 2021.

Pass Journal entries regarding the issue and redemption of debentures, DRR and Investment without providing for the interest or loss on issue of debentures.

Anurag Pathak Changed status to publish November 4, 2023