Mansi Ltd, an unlisted (Non-NBFC/HFC) company, had 6,000; 10% Debentures of ₹ 100 each due for redemption on 31st March, 2022. As per the terms of issue, debentures were redeemed out of profits.

Pass necessary Journal entries for the redemption of debentures. There was a credit balance of ₹ 6,00,000 in Surplus, i.e., Balance in Statement of Profit & Loss.

Anurag Pathak Changed status to publish November 2, 2023