On April 1, 2000 Simplox Limited (SL) issued 10% convertible debentures of face value ₹ 200 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 11% on these debentures. Show how it is to be recognized initially. At the end of three years’ market price of these debentures is ₹ 250 and company offer to debenture holder to accept ₹ 250 per debenture as redemption amount. If debenture holders accept the offer, then how should it be provided in the books of accounts?