[thisismyus]

3. A company had made an issue of 5,000 debentures of Rs. 100 each at par a Sinking Fund having been created to provide for repayment.

Under the terms of issue, the company might under certain conditions purchase the debentures in the open market for cancellation.

On 1-4-2000, 3,800 of the debentures were outstanding and Sinking Fund then amounted to Rs. 2,50,000. The Sinking fund Investments that date consisted of Rs. 1,24,000 5% Loan (2500) standing in the books at Rs.1,20,000.

On 1-4-2000, the directors purchased Rs.20,000 of the debentures in Rs.19,000 realizing 5% Loan (2500) at 96 per cent to raise the necessary funds.

Interest on 5% Loan (2005) was received on 30th September and 31st March and was invested forthwith in further purchase of 5% Loan (2005) at per in each case.

On 31st March,2001 a further Rs.20,000 was credited to the Sinking Fund and invested in 5% Loan (2005), Rs 19,850 of which was purchased.

Pass journal entries to record these transactions in the books of the company and prepare necessary ledger accounts.

[willona]

Issued to john and patty drivers 20,00 shares of capital stock in exchange for a total of $200,000 cash. What do I have to credit and debit.

Thank you

[willona]

Show me a general journal