Jerome Ltd., an unlisted manufacturing company, had 20,000, 6% Debentures of ₹100 each due for redemption at par on 31st March, 2022. On this date the company had the required amount of ₹2,00,000 in its Debenture Redemption Reserve.
The Debenture Redemption Investment which was purchased on 30st April, 2021, was realised at 98% on the date of redemption and the debentures were redeemed on the due date You are required to pass journal entries in the books of the company for the year 2021-22. (Ignore interest on debentures).
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On 1st April, 2017, Gabriel Ltd., a listed company, issued 3,000, 8% Debentures of ₹100 each. One- third of the Debentures were redeemed at par on 315t March, 2021, and the remaining two-third on 31st March, 2022.
The company paid interest on debentures annually on 31st March.
After meeting the requirements of the Companies Act, 2013, regarding Debenture Redemption Investment, the debentures were redeemed by the company.
You are required to record necessary journal entries in the books of the company only on 31st March, 2022, including entries for interest on debentures.
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