CA
694 Points
Joined February 2010
(i) Rama Limited issued 8% Debentures of Rs. 3,00,000 in earlier year on which interest is payable half yearly on 31st
March and 30th September. The company has power to purchase its own debentures in the open market for
cancellation thereof. The following purchases were made during the financial year 2009-10 and cancellation made on
31st March 2010 :
(a) On 1st April Rs.50,000 nominal value purchased for Rs. 49,450, ex-interest.
(b) On 1st September Rs.30,000 nominal value purchased for Rs.30,250 cum interest.
Show the Journal Entries (without narrations) for the transactions held in the year 2009-10.