On June 30, 2016; following balances stood in the books of SP Ltd. : 7% Second Mortgage Debentures of ₹100 each: ₹4,00,000 Income received on Sinking Fund Investments: ₹14,500 Discount on issue of Debentures: ₹25,000 Sin

7% Second Mortgage Debenture A/c Date Particulars Rs. Date Particulars Rs. 30.06.16 To Debenture Holders A/c 4,00,000 30.06.16 By Balance b/d 4,00,000 4,00,000 4,00,000 Sinking Fund Account Date Particulars Rs. Date Particulars Rs. 30.06.16 To Sinking Fund Investment A/c (5% State Development Loans) 10,000 30.06.16 By Balance b/d 3,65,500 30.06.16 To Sinking Fund Investment A/c (6% National Defence Bonds) 20,000 30.06.16 By Interest on sinking fund A/c 14,500 1.07.16 To discount on Issue of Debentures 25,000 1.07.16 By Profit & Loss A/c 50,000 1.07.16 To premium on Redemption of Debentures 10,000 1.07.16 To General Reserve A/c 3,65,000 4,30,000 4,30,000 Sinking Fund Investment A/c Date Particulars Rs. Date Particulars Rs. 30.06.16 To balance b/d ₹ 3,00,000, 5% State Development Loans ₹ 1,80,000, 6% National Defence Bonds 1,90,000 2,00,000 30.06.16 By Bank A/c ₹ 2,00,000, 5% State Development Loans at 90% ₹ 1,80,000, 6% National Defence Bonds at Par 1,80,000 1,80,000 By Sinking Fund A/c (Loss on Sale) 30,000 3,90,000 3,90,000