11% Debentures A/c (2,000 Issue)
Debenture Redemption Fund A/c
13.5% Debentures in XX Ltd. A/c
(Face Value 10,00,000)
Own Debentures A/c
(Face Value of 10,00,000)
As 31 March 2011 was the date of redemption of the 2,000 debentures, the company started buying own debentures and made the following purchases in the open market:
1 May 2010 1,000 debentures at Rs.98 cum- interest
1 September 2010 1,000 debentures at Rs.99 ex- interest
Half-yearly interest is due on the debentures on the 30 September and 31 March in the case of both the companies.
On 31 March 2011, the debentures in XX Ltd were sold for Rs.95 each ex-interest. On that date, the outstanding debentures of MM Ltd. were redeemed by payment and by cancellation.
Show the entries in the following ledger accounts of MM Ltd. during 2010-11:
Debenture redemption fund A/c
Own debenture A/c
The face value of a debenture was Rs.100. (Round off calculations to the nearest rupee)
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