Reference no: EM133004219

Question -

(a) T Ltd had 16,000, 12% Debentures of 100 each outstanding as on 1st April, 2020, redeemable on 31st March, 2021. On that day, Debenture Redemption Reserve was 14,98,000 represented by 2,000 own debentures purchased at the average price of 99 ex and 9% Govt. Bonds (face value 13,20,000). The annual installment was 56,800. On 31st March, 2021, the investments were realized at 98% and the debentures were redeemed. Prepare 12% Debentures Account and Debenture Redemption Reserve Account.

(b) On 31 st March, 2021 the paid up capital of P Ltd. is 9,00,000 consisting of 60,000 Equity Shares of 10 each fully paid up and 40,000 Equity Shares of 10 each, 7.50 per share paid up. It has 60,000 in Securities Premium Account, 50,000 in Profit and Loss Account (Cr.), 1,00,000 in General Reserve and 1,30,000 in Capital Redemption Reserve Account. It has 6,00,000, 12% Partly Convertible Debentures of 100 each (20% of Debentures are convertible into equity shares of 10 each fully paid on 1st June 2021). On 1st April, 2021, the Company decided to convert the partly paid equity shares into fully paid shares by way of bonus and to issue fully paid-up Bonus Shares to the holders of fully paid up shares in the same ratio. Calculate the amount of Bonus.