On Jan 1 20X1 Q Ltd Had Issued 500 Debentures

On Jan 1 20X1 Q Ltd had issued 500 debentures at a face amount of $5 000 each, 10% interest payable annually in arrears.There was a premium on issue of $750 per debenture.These debentures were publicly tradable after initial issue.The terms of issue state that the debentures can be bought back directly from the holder upon payment by Q Ltd of a premium of $400 per debenture and accrued interest.On July 1 20X6 Q Ltd bought back 100 of the debentures via the open market (Australian Securities Exchange) where the market price was steady at $4 300.
-What would be the correct journal entry to record this buy back by Q Ltd?
$ $

A) $\begin{array}{llcc} \text { } &\$&\$ \\ \text {Dr Debentures } &500000\\ \text {\( \mathrm{Cr} \) Revenue - discount on redemption of debentures } &&70000\\ \text { Cr Bank} &&430000\\ \text { } &\\ \text { } &\\\end{array}$

B) $\begin{array} { l r r } \text { Dr Debentures } & 430000 & \\\text { Dr expense - premium on redemption of debentures } & 40000 & \\\text { Dr interest expense } & 25000 & \\\text { Cr Bank } & & 495000\end{array}$
C) $\begin{array} { l r r } \text { Dr Debentures } &500000& \\\text { Dr expense - premium on redemption of debentures } & 40000 & \\\text { Dr interest expense } & 25000 & \\\text { Cr Bank } & & 565000\end{array}$

D) None of these entries