Question

X Ltd redeemed 1,000, 12% debentures of Rs. 50 each by converting them into 15% New Debentures of Rs. 100 each Journalise.

Answer 1

$\text{Journal Entries}\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{LF}& \text{Amt. (Dr)}& \text{Amt.(Cr)}\\ & \text{12\% Debentures A/c Dr}& & & 50,000& \\ & \text{To Debenture Holders A/c}& & & & 50,000\\ & \text{(Amount of 1000 debentures due to}& & & & \\ & \text{debenture holders)}& & & & \\ & \underset{–}{}& & & & \\ & \text{Debenture Holders A/c Dr}& & & 50,000& \\ & \text{To 15\% Debentures A/c}& & & & 50,000\\ & \text{(15\% 500 debentures issued to debenture}& & & & \\ & \text{holder at Rs. 100 each in lieu of 1000 12\% debentures)}& & & & \\ & \text{at Rs. 50 each)}& & & & \end{array}$

Working Note

Number of 15% debentures to be issued $=\frac{50,000}{100}=500\text{debentures}$