C26 illustration 4 Hindustan Ltd., issued 50,000,6% Debentures of 100 each on 1st January, 2002. The debentures are redeemable by the creation of a Sinking Fund. The company had the right to call upon the Trustee to apply the Sinking Fund monies in purchasing own debentures, if available below par. The following information is given : (a) The annual appropriation is Rs. 50,000. (b) Sinking Fund Balance as on 1st January, 2005 was Rs. 1,31,942 represented by 6% State Loan at cost of Rs. 74,262 (face value Rs. 80,000) and Sinking Fund cash Rs. 56,830. This cash balance which includes the annual appropriation of Rs. 50,000 was invested in 6% State Loan. The Loan bond, purchased cum interest, had a face value of Rs. 60,000 (c) 1st September, 2005 sold the State Loan of the face value Rs. 40,000 out of loan held on 1st January, 2005 Rs. 38,000 (ex-interest) and the proceeds were applied in purchasing own debentures (face value Rs. 45,000 ex-interest). (d) The debentures purchased are cancelled on 31st December. (e) Interest on State Loan is received on 31st March and 30th September Interest on debentures is paid on 30th June and 31st December. (9) Debentures outstanding as on 1st January, 2005 were Rs. 4,67,000. Make ledger entries in the books of the company to give effect to the above