On 1st January 2016, Debenture Account showed a balance of ₹1,50,000 in the books of X Ltd. A sinking fund has been created to redeem the debentures which the trustees are empowered to utilise in cancelling the debentures by open market purchase at below par. The Sinking Fund stood at ₹48,750 on 1st January 2016 and the entire amount had been invested. During the year 2016, the trustees sold the investments and redeemed the debentures as noted below:

Interest received on 31.12.2016 was ₹1,070 and the annual contribution was ₹17,200. Pass the necessary entries and show how the Ledger Accounts would appear in the books of the company.

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28.2.2016:* 30.9.2016:* Investment Cost 18,000 10,000 Realised 17,562 11,050 Debentures face value 18,800 11,200 Cost 17,210 40,980