The following information relates to Theta Corp : On 1 April 2029 the company had 900,000 6%
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- The following information relates to Theta Corp:
- On 1 April 2029 the company had £900,000 6% debentures in issue. The interest on these debentures is paid on 30 September and 31 March.
- The debenture redemption fund balance (relating to the redemption of these debentures) at 1 April 2029 was £70,000. This fund is being built up by annual appropriations of £10,000. The annual appropriation (along with any dividends or interest on the investments) is invested on 31 March.
- Debenture redemption fund investments can be realized at any time to purchase debentures in the open market either at or below par value. Such debentures are then canceled.
- On 31 December 2029, £50,000 of investments were sold for £57,000, and the proceeds were used to purchase debentures with a par value of £60,000.
- Dividends and interest on redemption fund investments during the year to 31 March 2030 amounted to £8,000.
- The cost of dealing with the above matters and any taxation effects may be ignored.
Required: Write up the following ledger accounts for the year to 31 March 2030: (a) 6% debentures; (b) debenture redemption fund; (c) debenture redemption fund investments; (d) debenture redemption; and (e) debenture interest.
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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