Mansuri Limited of Dahod issued 8,000, 10% debentures of ₹ 100 each at a discount of 10% as on 1-4-2017. The amount were payable as under: ₹ 30 wIth application; ₹ 35 on allotment and balance amount on final call. Company received application of 10,500 debentures, of which 8,000 debentures are allotted. Amount was refunded to the applicants on rejected applications.
All the moneys due on debentures were duly received.
Expenses on Issue of debentures amounted ₹ 22,000. DIrectors decided to write off 1/5th amount of “Expenses on Issue A/c” and “Discount on Debenture A/c” from statcmcnt of profit and loss each year.
Write journal entries for first year only from the above transactions in the books of company.
