A Ltd. has issued 2,000, 6% debentures of 100 each on 1st January, 2007. Interest was payable
Question:
A Ltd. has issued 2,000, 6% debentures of ₹100 each on 1st January, 2007. Interest was payable half-yearly on 30th June and 31st December each year. They are repayable at par on 31st December, 2014 with the option to redeem them at any time after 31st December, 2015 at ₹103. On January 1, 2016, the balance in the Debenture Redemption Fund Account stood at ₹1,07,000 which was invested outside. On 30th June, 2016 a notice was given for redemption of the above debentures with the option to receive one new 9% debenture of ₹100 each at ₹98 and ₹5 in cash for each 6% debenture in place of ₹103 in cash. The holders of 1,800 debentures exercised this option and the remaining were paid in cash. The company sold the investments costing ₹72,000 for ₹87,400. The company completed the redemption. Give necessary Ledger Accounts, affected by the above transactions ignoring interest payments.
Step by Step Answer:
Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015
ISBN: 9789352605569
2nd Edition
Authors: M Hanif, A Mukherjee