On April 1, 2000 Sport Limited (SL) issued 10% convertible debentures of face value ₹100 each. Each debenture is convertible into four equity shares after five years from the date of issue. Had SL issued redeemable debentures then it would have offered an interest rate of 12% on these debentures. Show how it is to be recognized initially. At the end of three years, the market price of these debentures is ₹140 and company offer to debenture holder to accept ₹140 per debenture as redemption amount. If debenture holders accept the offer then how should it be provided in the books of accounts?