A company purchased 200, 12% debentures of ₹100 each at ₹97 on cum interest basis on 1st July, 2015 for immediate cancellation. Interest is payable on 30th September and 31st March each year. Pass journal entries in the

Journal Entries Date Particulars Dr. (₹) Cr. (₹) 1/7/15 12% Debenture A/c Dr. 20,000 Debenture Interest A/c Dr. 600 To Bank A/c 19,400 To Profit on Redemption of Debenture 1,200 (Cancellation of 200 debentures of ₹100 each by purchase in the open market at ₹97 cum- interest) Profit on redemption of debenture A/c Dr. 1,200 To Capital Reserve A/c 1,200 (Transfer of profit on cancellation) Profit & Loss A/c Dr. 600 To Debenture Interest 600 (Transfer of Interest)