On January 01, 2012, X. Ltd. issues 5,000, 8% debentures of Rs. 100 each repayable at par at the end of three years. It has been decided to set up a cumulative sinking, fund for the purpose of their redemption. The investments are expected to realized 4% net. The Sinking Fund Table shows that Rs. 0.320348 amounts to one rupee: @ 4% per annum in three years. On December 31, 2014 the balance at Bank was Rs. 2,42,360 and the investments realised Rs. 3,25,000. The debentures were paid ***. Give journal entries and show ledger account.
