Pi Ltd issues loan notes of €75,000 on 1 January 2018. Redemption is to take place on equal terms, four years later. The company decides to put aside an equal amount to be invested at 5% which will provide €75,000 on maturity. Tables show that €0.232012 invested annually will produce €1 in four years’ time.

Required: (a) Loan-note redemption reserve account. (b) Loan-note sinking fund investment account. (c) Loan-notes account. (d) Extract from the retained profits account.