On April 1, 2010, X Limited has 10,000; 100 each, 12% debentures. The terms of issue provide

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On April 1, 2010, X Limited has 10,000; ₹100 each, 12% debentures. The terms of issue provide that every year 1/5 of debentures to be redeemed by making purchase from open market. During the year 2010–11, the company purchased the following debentures:

(i) 800 debentures at a market price of ₹98 per debenture these were cancelled subsequently.

(ii) 1,200 debentures at a market price of ₹99.20 per debenture these were sold by company @ ₹101 per debenture. Show necessary journal entries in the books of accounts.

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Financial Accounting

ISBN: 9780071078023

1st Edition

Authors: Dhanesh K. Khatri

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