Anirudh Ltd. Has 4000, 8% debentures of Rs. 100 each due for redemption on March 31,2005. The company has debenture redemption reserve of Rs. 1,50,000 on that date.Assuming that no interest is due, record the necessary Journal entries at the time of redemption of debentures.

Anirudh Ltd. Has 4000, 8% debentures of Rs. 100 each due for redemption on March 31,2005. The company has debenture redemption reserve of Rs. 1,50,000 on that date.Assuming that no interest is due, record the necessary Journal entries at the time of redemption of debentures.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Anirudh Ltd. Has 4000, 8% debentures of Rs. 100 each due for redemption on March 31,2005. The company has debenture redemption reserve of Rs. 1,50,000 on that date.
Assuming that no interest is due, record the necessary Journal entries at the time of redemption of debentures.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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