Debentures

dipanshu (marketing rep.) (28 Points)

17 October 2011  

 

 

please help me in this question

 

On 1st April, 2005 Appolo Ltd. issued 2,000, 12% Debentures of Rs. 100 each repayable

at par at the end of three years. It has been decided to set up a ‘Sinking Fund’ for the

purpose of their redemption. The investments are expected to earn interest of

4% p.a. The Sinking Fund Table shows that Re. 0.320348 invested each year

amounts to Re 1 @ 4% p.a. in three years.

Investments were sold at par on 31st March, 2008 and the debentures were paid off.

Pass journal entries and prepare necessary accounts. Entries relating to interest on

debentures may be ignored.

i need an answer for this please its urgent

thanks