Taneja Constructions Ltd. has an outstanding balance of Rs. 5,00,000, 7% debentures of Rs. 100 each redeemable at a premium of 10%. According to the terms of redemption, the company redeemed 30% of the above debentures by converting them into shares of Rs. 50 each at a premium of 20%. Record the entries for redemption of debentures in the books of Taneja Constructions Ltd.
Number of debentures to be redeemed= 5000*30%=1500 debentures.
Number of equity shares to be issued =165000/(60) i.e. 50+20% of 50= (50+10)= 60
=2750 equity shares