Q.3 Roshan Ltd. gave notice of its intention to redeem its outstanding 4, 00,000, 8% debenture at 105 (nominal value 100) and offered the following options to the holders: a) 11% preference share of 40/- each at * 50 per share. b) 10% debenture at 100 (at par). c) To have their holdings redeemed for cash. Assume redemption out profit only. 1) The holders of 1, 40,000 debenture accepted option (a). 2) The holders of 1, 60,000 debentures accepted option (b). 3) The remaining debenture holders accepted option (c). Pass the necessary journal entries in the books of Roshan Ltd.
Q.3 Roshan Ltd. gave notice of its intention to redeem its outstanding 4, 00,000, 8% debenture at 105 (nominal value 100) and offered the following options to the holders: a) 11% preference share of 40/- each at * 50 per share. b) 10% debenture at 100 (at par). c) To have their holdings redeemed for cash. Assume redemption out profit only. 1) The holders of 1, 40,000 debenture accepted option (a). 2) The holders of 1, 60,000 debentures accepted option (b). 3) The remaining debenture holders accepted option (c). Pass the necessary journal entries in the books of Roshan Ltd.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please answer this with must must explanation , narrations , calculation for each entry for each parts clearly answer in text form
Transcribed Image Text:Q.3 Roshan Ltd. gave notice of its intention to redeem its outstanding 4, 00,000, 8%
debenture at 105 (nominal value 100) and offered the following options to the holders:
a) 11% preference share of 40/- each at * 50 per share.
b) 10% debenture at 100 (at par).
c) To have their holdings redeemed for cash. Assume redemption out profit only.
1) The holders of 1, 40,000 debenture accepted option (a).
2) The holders of 1, 60,000 debentures accepted option (b).
3) The remaining debenture holders accepted option (c).
Pass the necessary journal entries in the books of Roshan Ltd.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education