Sham Motors Ltd., and unlisted (Non-NBFC/HFC) company, issued 40,000; 7% Debentures of ₹ 100 each on 1st July 2015 redeemable at premium of 5% as under:
On 31st March, 2021
On 31st March, 2022
On 31st March, 2023
It was decided to transfer amount out of profit to Debentures Redemption Reserve ₹ 50,000 on 31st March, 2018; ₹ 1,00,000 on 31st March, 2019 and balance on 31st March, 2020. It invested the required amount in terms of the Companies Act, 2013 in Government Securities and decided to realise them after last redemption. Pass Journal entries ingnoring interest.