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

In the books of X. Ltd.
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
	12% Debentures A/c		Dr.		50,000
	To Debenture Holders					50,000
	(Amount of debentures due to Debenture Holders)
	Debenture Holders		Dr.		50,000
	To 15% Debentures A/c					50,000
	(15% Debentures issued to Debenture Holders in lieu of 1000 12% Debentures @ 100 each)

Working Notes:-

Number of Debentures to be issued