The following information relates to Grigg plc:

1 On 1 April 2014 the company had $£ 100,00010 \%$ loan notes in issue. The interest on these loan notes is paid on 30 September and 31 March.

2 The loan note redemption fund balance (relating to the redemption of these loan notes) at 1 April 2014 was $£ 20,000$. This fund is being built up by annual appropriations of $£ 2,000$. The annual appropriation (along with any dividends or interest on the investments) is invested on 31 March.

3 Loan note redemption fund investments can be realised at any time in order to purchase loan notes in the open market either at or below par value. Such loan notes are then cancelled.

4 On 31 December $2014 £ 10,000$ of investments were sold for $£ 11,400$ and the proceeds were used to purchase loan notes with a par value of $£ 12,000$.

5 Dividends and interest on redemption fund investments during the year to 31 March 2015 amounted to $£ 1,600$.

6 The cost of dealing with the above matters and any taxation effects may be ignored.

\section*{Required:}

Write up the following ledger accounts for the year to 31 March 2015:

(a) $10 \%$ loan notes

(b) loan note redemption fund

(c) loan note redemption fund investments

(d) loan note redemption

(e) loan note interest.

Note: The loan note redemption fund is sometimes known as a sinking fund.