Tag Archives | Redemption of Debentures

Accounting Entries for Redemption of Debentures | Accounting

In this article we will discuss about the accounting entries for redemption of debentures. 1. Redemption Out of Profits: When debentures are redeemed out of profit, it is essential that an equal amount to the face value of the debentures redeemed will be transferred to Debenture Redemption Reserve Account. When all the debentures are redeemed, the Debenture Redemption Reserve Account [...]

By |2017-02-06T20:59:00+00:00February 6, 2017|Debentures|Comments Off on Accounting Entries for Redemption of Debentures | Accounting

Redemption of Debentures | Company | Accounting

To provide necessary funds for the discharge of debentures, the company may adopt any of the following courses:- 1. By Creation of Debenture Redemption Fund or Sinking Fund 2. Insurance Policy Method. 1. By Creation of Debenture Redemption Fund or Sinking Fund: The ideal method is to set aside every year a certain sum of money by creating a Sinking [...]

By |2017-02-06T20:58:59+00:00February 6, 2017|Debentures|Comments Off on Redemption of Debentures | Company | Accounting
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