S. Singh Limited obtained loan of ₹ 5,00,000 from State Bank of India @ 10% p.a. interest. The compay issued ₹ 7,50,000, 10% Debentures of ₹ 100 each in favour of State Bank of India as Collateral Security. Pass necessary Journal entries for the above transactions:

  • When company decided not to record the issue of 10% Debentures as Collateral Security.
  • When company decided to record the issue of 10% Debentures as Collateral Security.

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