[CBSE] Q. 32 Issue of Debentures Solution TS Grewal Class 12 (2023-24)

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Solution of Question number 32 of the Issue of Debentures Chapter of TS Grewal Book 2023-24 CBSE Board?

S. Singh Limited obtained loan of ₹ 5,00,000 from State Bank of India @ 10% p.a. interest. The company issued ₹ 7,50,000, 10% Debentures of ₹ 100 each in favour of State Bank of India as Collateral Security. Pass necessary Journal entries for the above transactions:

(i) When company decided not to record the issue of 10% Debentures as Collateral Secuity.

(ii) When company decided to record the issue of 10% Debentures as Collateral Security.

Solution:-

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