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Question - Redemption of Debentures for Immediate Cancellation - Draw of Lots, Lump Sum and Purchase in the Open Market

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Question

On 1-4-2013 NK Ltd. had 15,000, 9% Debentures of Rs.100 each outstanding.

(i) On 1-4-2014 the company purchased from the open market 5,000 of its own debentures for Rs.102 each and cancelled the same immediately.

(ii) On 1-4-2015 company redeemed at par debentures of Rs.3, 00,000 by draw of lot.

(iii) On 17-2-2016 the remaining debentures were purchased for immediate cancellation for Rs.5, 99,500.

Ignoring debenture redemption reserve and interest on debentures pass necessary journal entries for the above transactions in the books of the company.

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