Y.Ltd. redeemed 4,800, 12% debentures of Rs.100 each which were issued at par, at 110 per cent by converting them into equity shares of Rs.10 each issued at a discount of 4%. Journalise.

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Solution

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

12% Debentures A/c

Dr.

4,80,000

Premium on Redemption of Debenture A/c

Dr.

48,000

To Debenture Holders A/c

5,28,000

(Amount of debentures due to Debenture Holders)

Debenture Holders A/c

Dr.

5,28,000

Discount on Issue of Shares A/c

Dr.

22,000

To Equity Share Capital A/c

5,50,000

(Equity shares issued to Debenture Holders in lieu of debentures)

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Similar questions

Q. Y Ltd redeemed 4,800,

12 %

debentures of Rs 100 each which were issued at par, at 110 per cent by converting them into equity shares of Rs 10 each issued at a discount of

4 %

. Journalise.

A.Ltd. redeemed 8,000, 12% debentures of Rs.100 each which were issued at a discount of 5%, by converting them into equity shares of Rs.10 each at par.

Q. A Ltd redeemed 8,000, 12% debentures of Rs. 100 each which were issued at a discount of 5%, by converting them into equity shares of Rs. 10 each at par.

Q. Pass necessary journal entries in the following cases :
(i)

Z

Ltd redeemed

1500

12 %

debentures of Rs

100

each issued at a discount of

6 %

by converting them into equity shares of Rs

100

each issued at a premium of Rs

25

per share.
(ii)

X

Ltd. converted

1, 000, 12 %

debentures of Rs

100

each issued at a discount of Rs

10

per debenture into equity shares of Rs

100

each Rs

90

paid up.

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Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
	12% Debentures A/c	Dr.		4,80,000
	Premium on Redemption of Debenture A/c	Dr.		48,000
	To Debenture Holders A/c				5,28,000
	(Amount of debentures due to Debenture Holders)

	Debenture Holders A/c	Dr.		5,28,000
	Discount on Issue of Shares A/c	Dr.		22,000
	To Equity Share Capital A/c				5,50,000
	(Equity shares issued to Debenture Holders in lieu of debentures)