Question

G.Ltd. issued 75,00,000, 6% Debenture of Rs.50 each at par payable Rs.15 on application and Rs.35 on the allotment, redeemable at par after 7 years from the date of issue of debenture. Record necessary entries in the books of Company.

Answer 1

Note: The entries for issue of debentures are same as that of shares with only difference that capital word is not used .