Equity Limited is a company that is involved in the retail of sporting goods. Due to the massive increase in demand for the merchandise sold by Equity Limited, it was necessary to build a shopping mall that specialized in the sale of sporting goods.

In order to raise the required capital, Algae issued 600 000 debentures at a price of N$12 per debenture issued on 1 January 2011. The debentures charge a coupon of 15% on the face value of N$10.

The debentures are compulsory convertible into ordinary shares on a 1 for 1 basis on 31 December 2014. The debentures were not designated at fair value through profit and loss on initial recognition.

The appropriate discount rate for debentures of this nature is 16%

REQUIRED:

Provide the necessary journal entries required to account for the above information for the years ended 31 December 2011 to 2014.

Narrations not required. Provide relevant workings such as amortization table if applicable.