Uniworld Ltd. had 10,000, 8% Debentures of ₹ 100 each due for redemption at a premium of ₹ 10 each as follows:
Pass the Journal entries for investment in specified securities for the above. Investment is made on 1st April.
|On 31st May, 2020||5,000 Debentures|
|On 31st May, 2021||3,000 Debentures|
|On 31st May, 2022||Balance Debentures|
Solution:-Hint:- Investments are realised to the extent that balance in Debentures Redemption Investment is equal to 15% of the debentures to redeemed in the next year. Debentures Redemption Investment is made of amount equal to 15% of the nominal of debentures to be redeemed.