[ISC] Q. 41 solution of Issue of Debentures TS Grewal Class 12 (2022-23)

Solution of Question number 41 of the Issue of Debentures Chapter of TS Grewal Book ISC Board 2022-23 session?

Woodcraft Ltd. issued 20,000, 8% Debentures of ₹ 100 each on 1st April, 2021 redeemable at 20% premium. The issue was fully susbcribed.

Pass the necessary Journal entries for issue of debentures and wirting off loss on issue of debentures.

Solution:-