Leo Ltd. (a listed NBFC) redeems its 9,000, 10% Debentures of ₹ 100 each at a premium of 5 % in instalments, as follows:
You are required to prepare:
(i) The Debenture Redemption Investment Account for the years 2021-22 and 2022-23. (ii) 10% Debentures Account for the year 2021-22.
OR
Honesty Ltd., an unlisted manufacturing company, had 30,000, 6% Debentures of ₹ 100 each due for redemption at par on 31st March, 2023. On this date the company had the required amount of ₹ 3,00,000 in its Debenture Redemption Reserve. The Debenture Redemption Investment, which was purchased on 30th April, 2022, was realized at 101% on the date of redemption of the debentures and the debentures were redeemed. You are required to pass journal entries in the books of the company for the year 2022-23. (Ignore interest on debentures)
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