On 01-04-1999, A Ltd., issued 2000, 7% debentures of Rs.100 each at a

1.	On 01-04-1999, A Ltd., issued 2000, 7% debentures of Rs.100 each at a discount of 10% redeemable at par after 4 years by converting them into equity shares of Rs.100 each issued at a premium of 25%. Pass journal entries in the following cases: (i) If debentures are redeemed on maturity. (ii) If debentures are redeemed before maturity
Answer» Case (i) – No. of Equity shares to be issued 1,600. Case (ii) – No. of Equity shares to be issued 1,440.

On 01-04-1999, A Ltd., issued 2000, 7% debentures of Rs.100 each at a discount of 10% redeemable at par after 4 years by converting them into equity shares of Rs.100 each issued at a premium of 25%. Pass journal entries in the following cases: (i) If debentures are redeemed on maturity. (ii) If debentures are redeemed before maturity

Answer»

Case (i) – No. of Equity shares to be issued 1,600.

Case (ii) – No. of Equity shares to be issued 1,440.