Sarthaks Test
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Diwakar enterprises Ltd. Issued 10,00,000, 6% debentures on April 1, 2002. Interest is paid on September 30, 2002, and March 31, 2003. Record necessary journal entries assuming that income tax is deducted @30% of the amount of interest. 

(Amount of tax Rs.18,000 for the year ending March 31, 2003)

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Note: It is assumed that debentures are issued worth Rs. 10,00,000 instead of 10,00,000 debentures.

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