7. Rama Limited issued 8 % debentures of 3,00,000 in earlier year on which interest is payable half yearly on 31st March and 30th September, the company has power to purchase its own debentures in the open market for cancellation thereof. The following purchases were made during the financial year 2017-18 and cancellation was made on 315 March 2018 a) On 1 st April 350,000 nominal value debentures purchased for 349,450 ex interest b) On 1 st Sepember 30,000 nominal value debentures purchased for $30,250 cum- interest. Show Journal entries 8. 20,000 equity shares of 10 each fully paid Securities Premium 30,000 General Reserve 1,00,000 Profit and loss account 80,000 In the General meeting the following resolutions were passed: a) To issue 2 bonus shares for every 5 shares held as on date b) To give existing shareholders the option to purchase three 310 right shares for every 5 shares held before the issue of bonus shares. c) All shareholders took up the option of rights shares and bonus shares, Pass necessary journal entries