Pass the necessary journal entry when 10,000 debentures of Rs.  100 each are issued as collateral security against a Bank Loan of Rs. 8,00,000.

SOLUTION

Debenture Suspense A/c          Dr. 10,00,000
To Debentures A/c
(Issue of 10,000 debentures of Rs. 100 each as collateral security against the bank loan of Rs. 8,00,000)



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