Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. q.4. on 1st january, 2013 xyz limited issued 10,00

Q.4. On 1st January, 2013 XYZ Limited issued 10,000 fifteen years debentures of 100 each...

60.1K

Verified Solution

Question

Accounting

Q.4. On 1st January, 2013 XYZ Limited issued 10,000 fifteen years debentures of 100 each bearing interest at 10% p.a. One of the conditions of issue was that the company could redeem the debentures by giving six month's notice at any time after 5 years, at a premium of 4%, either by payment in cash or by allotment of preference shares and / or other debenture at the option of the debentureholders.
On 1st April, 2018 the company gave notice to the debentureholders of its intention to redeem the debentures on 1st October, 2018 either by payment in cash or by allotment of 11% preference shares of 100 each at 130 per share or 11% second Debentures of 100 at 96 per debenture.
Holders of 4,000 debentures accepted the offer of the preference shares; holders of 4,800 debentures accepted the offer of the 11% second debentures and the rest demanded cash on 1st, October, 2018.
Required:
Give the journal entries to give effect to the above as of 1st October, 2018.(20 marks)
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students