[ISC] Q. 38 solution of Issue of Debentures TS Grewal Class 12 (2022-23)

Solution of Question number 38 of the Issue of Debentures Chapter of TS Grewal Book ISC Board 2022-23 session?

Kitply Ltd. issued ₹ 2,00,000, 10% Debentures at a discount of 5%. The terms of issue provide the repayment at the end of 4 years. Kitply Ltd. has a balance of ₹ 5,00,000 in Securities Premium Reserve. Pass the Journal entries for issue of debentures and writing off the discount.

Solution:-