Pass necessary Journal entries relating to issue of Debentures and to write off discount/loss on issue of debentures in the books of Dhatu Ltd. in the following cases:
- 400, 11% Debentures of ₹ 1,000 each are issued at 10% discount and redeemable at par. Balance in Securities Premium Account is ₹ 50,000.
- 500, 10% Debentures of ₹ 1,000 each are issued at 10% discount and redeemable at a premium of 10%. Balance in Securities Premium Account is ₹ 75,000.
Solution :
