Blank Enterprises issued 30,000 12% debentures of Rs. 10 each at par to be redeemednout of profits after 5 years at par. Debentures are callable after 3 years at an exercise price ofRs. 11 per debenture. After 4 years the company invoked the call option and holders of the nominal value of Rs. 50,000 responded to the call option. Record the necessary Journalentries.
Blank Enterprises issued 30,000 12% debentures of Rs. 10 each at par to be redeemednout of profits after 5 years at par. Debentures are callable after 3 years at an exercise price ofRs. 11 per debenture. After 4 years the company invoked the call option and holders of the nominal value of Rs. 50,000 responded to the call option. Record the necessary Journalentries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blank Enterprises issued 30,000 12% debentures of Rs. 10 each at par to be redeemednout of profits after 5 years at par. Debentures are callable after 3 years at an exercise price of
Rs. 11 per debenture. After 4 years the company invoked the call option and holders of the nominal value of Rs. 50,000 responded to the call option. Record the necessary
entries.
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