Sure Ltd. made an issue of 1,000, 6% debentures of 1,000 each on 1.1.2014 at the issue
Question:
Sure Ltd. made an issue of 1,000, 6% debentures of ₹1,000 each on 1.1.2014 at the issue price of ₹960. The terms of issue provided that beginning with 2016, ₹40,000 debentures should be redeemed either by purchase in the market or by a lot at par. The expenses of the issue amounted to ₹8,000 which were written-off in 2014. In 2015 and 2016, the discount on issue of debentures was written-off equally. In 2016, the company purchased ₹12,000 debentures at ₹940 cum-interest on 30th September and ₹20,000 debentures at ₹950 ex-interest on 30th November, the expenses being ₹800. On 31st December the debentures necessarily to be redeemed were paid-off at par by drawings by lot. Assuming the interest is payable on 30th June and 31st December, make Journal Entries to record the above transactions.
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