A company issues the following debentures:
- 10,000, 12% debentures of Rs. 100 each at par but redeemable at premium of 5% after 5 years.
- 10,000, 12% debentures of Rs. 100 each at a discount of 10% but redeemable at par after 5years.
- 5,000, 12% debentures of Rs, 100 each at a premium of 5% but redeemable at par after 5 years.
- 1,000, 12% debentures of Rs. 100 each issued to a supplier of machinery costing Rs. 95,000. the debentures are repayable after 5 years; and
- 300, 12% debentures of Rs. 100 each as a collateral security to a bank which has advanced a loan of Rs. 25,000 to the company for a period of 5years. pass the journal entries to record the; (a) issue of debentures; and (b) Repayment of debentures after the given period.
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