On 1st April, 2022, Golden Trading Ltd., an unlisted (Non-NBFC or HFC company), had outstanding 1,000; 12% Debentures of ₹ 100 each. Interest on debentures is payable half yearly on 30th September and on 31st March. On 1st July, 2022, it purchased 300 own debentures at ₹ 93 each for cancellation.

Pass Journal entries for the purchase and cancellation of debentures assuming that the company has adequate balance in DRR and has also made investment is specified securities.

Anurag Pathak Changed status to publish November 5, 2023