SOLUTION
When profits equal to the amount utilised for repayment is transferred from Surplus of Statement of Profit and Loss to a newly opened account titled ‘Debenture Redemption Reserve Account it is called redemption out of profits.
SOLUTION
When profits equal to the amount utilised for repayment is transferred from Surplus of Statement of Profit and Loss to a newly opened account titled ‘Debenture Redemption Reserve Account it is called redemption out of profits.