C27 (1) The amount to be invested on Jan 1, 2005 is Rs. 57,680; Rs. 60,000,6% State Loan has been purchased. Interest till date on this loan is Rs. 900; this has been debited to the interest on S.F. investments Account and the balance: Rs. 56,780, debited to the S.F. Investments Account (2) The total amount realised by sale of Rs. 40,000 State loan on Sept. 1, 2005 is Rs. 39,000 i.e., Rs. 38,000 plus Rs. 1,000 (interest for 5 months on Rs. 40,000). (3) Rs. 39,000 is utilised for purchase of Rs. 45,000 own debentures; the interest till date is Rs. 450 - debited to Debenture Interest Account, RS. 38,550 is debited to Own Debentures (S.F.) Account Illustration 5 MM Ltd. had the following among their ledger opening balances on January 1, 2005: Rs. 11% Debentures A/c (2000 issue) 50,00,000 Debenture Redemption Fund Alc 45,00,000 13.5% Debentures in XX Ltd. Alc (Face Value Rs. 20,00,000) 19,50,000 Own Debentures Alc (Face value Rs. 20,00,000) 18,50,000 As 31st December, 2005 was the date for redemption of the 2000 debentures, the company started buying own debentures and made the following purchases in the open market 1-2-2005 2,000 debentures at Rs. 98 cum-interest. 1-6-2005 2,000 debentures at Rs. 99 ex-interest. Half yearly interest is due on the debentures on the 30th June and 31st December in the case of both the companies On 31st December, 2005, the debentures in XX Ltd. were sold for Rs. 95 each ex-interest. On that date, the outstanding debentures of MM Ltd. were redeemed by payment and by cancellation, Show the entries in the following ledger accounts of MM Ltd. during 2005: (a) Debenture Redemption Fund Ac (b) Own Debentures Alc The face value of a debenture was Rs. 100 (Round off calculations to the nearest rupee.)