a limited company has an authorized capital of rs 20 crore in shares of rs 10 each o 618225

A limited company has an authorized capital of Rs.20 crore in shares of Rs.10 each of which 120 lakh shares have been issued and are fully paid. A summary of its balance sheet on 31 March 2010 is as follows:

Interest on debentures had been paid up to 31 March 2010. On 1 April 2010, the directors gave notice to redeem the 12% debenture holders on 1 July 2010, giving the holders the option to be Zepaid either wholly in cash or by issue of four shares of Rs.10 each (fully paid) for every Rs.L100 debentures. 60% of the holders exercised the option to take shares, and the cash of the remainder was obtained by realizing a sufficient amount of the investment at their market value on 31 March 2010. Draft journal entries to record these transactions and any consequent transfers which you consider necessary.