On 1-7-2017 Paras Pharma Limited issued 20,000,9% debentures of ₹ 400 each, are to be redeemed after 7 years at a premium of 12%. As per conditions in prospectus, the amount is payable on application ₹ 125 per debenture and balance amount at the time of allotment.
Pass the necessary journal entries for the issue of debentures in the books of the company.
