Modern Investors Ltd. issued on January 1, 2015, 20,000 5% debentures of 100 each redeemable at the
Question:
Modern Investors Ltd. issued on January 1, 2015, 20,000 5% debentures of ₹100 each redeemable at the option of the company after the second year at ₹104 upon given two months notice to the debentureholders. The company purchased the following debentures in the open market: On 3.2.2015 ₹4,000 nominal cum-interest cost ₹4,025. On 10.6.2015 ₹7,000 nominal ex-interest cost of ₹6,915. These debentures were retained as investments till July 2, 2016 when these debentures were cancelled. Show the respective ledger accounts as would appear in the books of the company for 2015 and for 2016 upto 3.7.2016. Interest is payable half yearly on June 30 and December 31 every year. Ignore income tax.
Step by Step Answer:
Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015
ISBN: 9789352605569
2nd Edition
Authors: M Hanif, A Mukherjee