On 10 th April, 2012, Zenith Ltd. issued 12,500, 12% debentures of ₹100 each at ₹98. Holders of these debentures have an option to convert their holdings into 14% preference shares of ₹100 each at a premium of ₹25 per sh

On 10 th April, 2012, Zenith Ltd. issued 12,500, 12% debentures of ₹100 each at ₹98. Holders of these debentures have an option to convert their holdings into 14% preference shares of ₹100 each at a premium of ₹25 per share at any time within three years. On 31 st March, 2013, holders of 2,500 debentures notified their intention to exercise the option. Show the journal entries relating to the issue and conversion of debentures in the books of the company.