Solution
Pass necessary Journal entries for the issue of Debentures in the following cases: (a) Rs. 40,000; 15% Debentures of Rs. 100 each issued at a discount of 10% redeemable at par. (b) Rs. 80,000; 15% Debentures of Rs. 100 each issued at a premium of 10% redeemable at a premium of 10%.