On 1st July, 2020 a company purchased its own 1,000 9% Debentures of ₹ 100 each for ₹ 88,360. You are required to give necessary Journal Entries if : (i) These 9% debentures are cancelled immediately. (ii) These 9% deben

Particulars Amount (₹) Amount (₹) (i) 9% Debentures A/c Dr. 1,00,000 To Bank A/c 88,360 To Profit on redemption of Debenture A/c 11,640 (1000 Debentures of ₹100 each purchased from market for ₹88360 and cancelled) Profit on Redemption of Debenture A/c Dr. 11,640 To Capital Reserve A/c 11,640 (Capital profit transferred to Capital Reserves A/c) (ii) Investment in 9% own Debentures A/c Dr. 88,360 To Bank A/c 88,360 (1000 own Debentures of ₹100 each Purchased as investments for ₹88360)