X Ltd. redeemed 100, 6% Debentures of Rs. 100 each by converting them into

Equity Shares of Rs. 100 each. The 6% Debentures were redeemable at 10%

premium for which the Equity Shares were issued at 25% premium. Pass the

necessary Journal entries for the redemption of above mentioned debentures in the

books of X Ltd.

6%debentures a/c                                            Dr                    10000

premium on redemption of debentures a/c  Dr                     1000

                       to debenture holders a/c                                                          11000

(being debentures redeemed)

debenture holders a/c                                        Dr                    11000

                     to equity share capital a/c                                                           8800

                    to securities premium a/c                                                            2200

(being 88 equity shares RS 100 each issued for convertion )