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BPL Ltd. converted 500, 9% debentures of ₹ 100 each issued at a discount of 6% into equity shares of ₹ 100 each issued at a premium of ₹ 25 per share. Discount on issue of 9% debentures has not yet been written off.
Showing your working notes clearly, pass necessary journal entries for conversion of 9% debentures into equity shares.

Answer
BPL Ltd. converted 500, 9% debentures of ₹ 100 each issued at a

Working Note:
No space of space Equity space Share space equals space fraction numerator Amount space Payable over denominator Issue space Price end fraction space equals space fraction numerator 50 comma 000 over denominator 125 end fraction
No. space of space Equity space Share space equals space 400 space Share