Question - 27

At the commencement of 2011, X Ltd. made an issue of 1,000, 10% debentures of Rs. 100 each the terms of issue provided for the redemption of Rs. 10,000 annually commencing from the end of 2011 either by drawings at par or by purchase in the market at the company's option at the end of 2011 the company purchased for cancellation Rs. 4,000 of its debentures @ 96, Rs. 3,000 @ Rs. 97 and Rs. 1000 @ Rs. 98 the board of directors decided to redeem the debentures out of appropriations of profits but wihtout building up a sinking fund record the entries of the above transactions in the company's ledger.

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