Solution
Alok Ltd. issued 7,000, 10% Debentures of Rs. 500 each at a premium of Rs. 50 per debenture redeemable at a premium of 10% after 5 years. According to the terms of issue, Rs. 200 was payable on application and balance on allotment. Record necessary Journal entries at the time of issue of 10% Debentures.