when debentures are purchased for immediate cancellation and there is no sinking fu 674563

(When debentures are purchased for immediate cancellation and there is no Sinking Fund)

Favourite Ltd. had 2,000, 12% Debentures of Rs.100 each as on 1st April, 2010. As per the terms of issue, the company purchased the following debentures in the open market for immediate cancellation:

Assuming that debenture interest was payable half yearly on 30th September and 31st March and the Income tax was deductible at the rate of 10% at source. Show the journal entries in the books of the company and prepare the necessary ledger accounts. The company closes its books on 31st March.