[ISC] Q. 22 solution of Issue of Debentures TS Grewal Class 12 (2022-23)

Solution of Question number 22 of the Issue of Debentures Chapter of TS Grewal Book ISC Board 2022-23 session?

Banana Tree Ltd. issued 4,00,000; 9% Debentures of ₹ 50 each, payable on application. Pass Journal entries, at the time of issue of debentures in the following situations:

(i) Issued at par, redeemable at 10% premium,

(ii) Issued at 5% premium, redeemable at 10% premium.

Solution:-