X Ltd. Issued 6% 1000 Debentures of 100 each at 5% Premium on 1.4.2012. The Debentures are redeemable at the end of 2016-17 at 10% premium as below : Either by way of conversion into equity shares of 10 each at its market price of 12.50 per share. Or by payment in cash Or by conversion into 8% New Debentures at par. On 31-03-2017 the Debenture holders opted as below- 50% for conversion into Equity Shares, 30% for New Debentures and rest for cash. Show necessary Journal entries in 2012-13 and in 2016-17 assuming that Debenture Interest is payable annually and the Debenture Redemption Reserve balance is ? 30,000.
X Ltd. Issued 6% 1000 Debentures of 100 each at 5% Premium on 1.4.2012. The Debentures are redeemable at the end of 2016-17 at 10% premium as below : Either by way of conversion into equity shares of 10 each at its market price of 12.50 per share. Or by payment in cash Or by conversion into 8% New Debentures at par. On 31-03-2017 the Debenture holders opted as below- 50% for conversion into Equity Shares, 30% for New Debentures and rest for cash. Show necessary Journal entries in 2012-13 and in 2016-17 assuming that Debenture Interest is payable annually and the Debenture Redemption Reserve balance is ? 30,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:X Ltd. issued 6% 1000 Debentures of 100 each at 5% Premium on 1.4.2012. The Debentures are redeemable
at the end of 2016-17 at 10% premium as below :
Either by way of conversion into equity shares of 10 each at its market price of ? 12.50 per share.
Or by payment in cash
Or by conversion into 8% New Debentures at par.
On 31-03-2017 the Debenture holders opted as below -
50% for conversion into Equity Shares, 30% for New Debentures and rest for cash.
Show necessary Journal entries in 2012-13 and in 2016-17 assuming that Debenture Interest is payable
annually and the Debenture Redemption Reserve balance is ? 30,000.
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