d. purchased for cancellation of 2000 of its own debentures of rs.200 each @ rs.190 per debenture . the BOD have decided to transfer the required amount of debentures redemption reserve accounts . journalise
Surplus i.e., Balance in statement of profit and loss Dr. 1,00,000
To Debenture Redemption Reserve a/c 1,00,000
Own debentures a/c Dr. 3,80,000
To Bank a/c 3,80,000
Debentures a/c Dr. 4,00,000
To Own debentures a/c 3,80,000
To Gain on cancellation of own debentures a/c 20,000
Gain on cancellation of own debentures a/c Dr. 20,000
To Capital reserve a/c 20,000
Debenture Redemption Reserve a/c Dr. 1,00,000
To General reserve a/c 1,00,000
To Debenture Redemption Reserve a/c 1,00,000
Own debentures a/c Dr. 3,80,000
To Bank a/c 3,80,000
Debentures a/c Dr. 4,00,000
To Own debentures a/c 3,80,000
To Gain on cancellation of own debentures a/c 20,000
Gain on cancellation of own debentures a/c Dr. 20,000
To Capital reserve a/c 20,000
Debenture Redemption Reserve a/c Dr. 1,00,000
To General reserve a/c 1,00,000