Redemption of debentures

Yes Debentures can Redeem At Discount.

Accounting Treatment:-

  An Amount equal "Discount on Redemption" will be transferred From Debenture Redemption A/c to Reserve or P/L A/c

 For this you need to First creat DRR A/c

  Entry For Creating DRR A/c:-

      Profit & Loss Appropriation A/c …Dr.

            To Debenture Redemption Reserve A/c