Grand Hotel Ltd. had 10,000, `12%` Debentures of Rs. 100each outsta
Channel: Doubtnut
Date: 29/03/2020

Grand Hotel Ltd. had 10,000, `12%` Debentures of Rs. 100each outstanding as at 31st March, 2018. These debentures were due for redemption on 30th June, 2019. The company decided to transfer Rs. 5,00,000 to Debentures Redemption on 30th june,2019. The company decided to transfer Rs. 5.00,000 to Debentures Redemption Reserve on 31st March, 2019 and invest in fixed deposits with Canara Bank Rs. 1,50,000 on 1st April, 2019. Pass Journal entries for Debentures Redemption Reserve, Debentures Redemption Investment and redemption of debentures.