___of debentures refers to extinguishing or discharging the liability on account of debentures in accordance with the terms of issue.

Q. of debentures refer to extinguishing or discharging the liability on account of debentures as per the terms of issue.

Q. Alka Ltd . issued 5,000, 10% Debentures of ​₹ 1,000 each at a discount of 10% redeemable at a premium of 5% after 5 years . According to the terms of issue ​₹ 500 was payable on application and the balance amount on allotment of debentures. Record necessary entries regarding issue of 10% Debentures.

Q. Manish Ltd. issued ₹ 40,00,000; 8% Debentures of ₹ 100 each on 1st April, 2017. The terms of issue stated that the debentures are to be redeemed at a premium of 5% on 30th June, 2019. The company decided to transfer ₹ 10,00,000 out of profits to Debentures Redemption Reserve on 31st March, 2018 and ₹ 10,00,000 on 31st March, 2019.
Pass Journal entries regarding the issue and redemption of debentures, DRR and Investment without providing for the interest or loss on issue of debentures.

Q. On 1st April, 2015. Mathew Ltd. issued 10,000, 9% Debentures of ₹ 100 each at a discount of 5%, redeemable at a premium of 5%. These debentures were redeemable as follows:

On 31st March, 2016	2,000 Debentures;
On 31st March, 2017	5,000 Debentures;
On 31st March, 2018	3,000 Debentures.

Prepare the Loss on Issue of Debentures Account, Debentures Account and Premium on Redemption of Debentures Account for three years.