A Ltd. converted its Rs.1,00,000, 9% debentures issued at a premium of 10% into 8% preference shares of Rs,100each.Pass the journal entries for redemption of debentures.
Date | Particulars |
| L.F. | Debit Amount Rs | Credit Amount Rs |
|
9% Debentures A/c To Debenture holders A/c (Amount of debenture holders due for redemption at par)
Debenture holders A/c To 8% Preference Share Capital A/c (Conversion of 1,000 |
Dr.
Dr. |
|
1,00,000
1,00,000
|
1,00,000
1,00,000 |
9% debentures into 1,000 8% Preference Shares of Rs 100 each issued at par)
Note: As in the question, the condition regarding the redemption of debentures has not been mentioned, so it has been assumed that the debentures are redeemable at par.