. A Ltd. decided to redeem $ 2,12,500 12% debentures. It purchased $ 1,70,000 debentures in the open market at $98.50 each the expenses being $100 and redeemed the balance of $42,500 debentures by draw of lots.

3. Explain Employee Stock Option Scheme.

4. Tesla traders purchased a machine on April 1, 2019, at a cost of $8,000 and spent $2,000 on its installation. The firm writes off depreciation @10% p.a. by a written down value method. The scrap value of the plant at the end of its economic life of 4 years is expected to be $6,561.

Show the machine account for 4 years in the books of tesla traders. The books are closed on 31 March every year.