Micro Swift Ltd. issued 20,000 8% debentures of ₹100 each as per follows: Series A of ₹5,00,000 (Nominal) for cash at a premium of 20% Series B of ₹5,00,000 (Nominal) for cash at 90% Series C of ₹5,00,000 (Nominal) to Bh

Micro Swift Ltd. Journal Entries Series Particulars Amount (Dr.) Amount (Cr.) A Bank A/c Dr. 6,00,000 To Debenture Application and Allotment A/c 6,00,000 (Application money received on 5000 debentures at a premium of 20%) Debenture Application and Allotment A/c Dr. 6,00,000 To 8% Debentures A/c 5,00,000 To Securities Premium Account 1,00,000 (Transfer of application money) B Bank A/c Dr. 4,50,000 To Debenture Application and Allotment A/c 4,50,000 (Application money received on 5000 debentures at a discount of 10%) Debenture Application and Allotment A/c Dr. 4,50,000 Discount on issue of Debentures A/c Dr. 50,000 To 8% Debentures A/c 5,00,000 (Transfer of application money) C Bank A/c Dr. 4,00,000 To Bharat Bank Loan A/c 4,00,000 (Bank Loan secured by issue of debentures) Debenture Suspense A/c Dr. 5,00,000 To 8% Debentures A/c 5,00,000 (Issue of debentures as collateral security) D Fixed Assets Account Dr. 4,50,000 To Vendor A/c 4,50,000 (Capital expenditure made for the purpose of fixed assets) Vendor A/c Dr. 4,50,000 Discount on issue of Debentures A/c Dr. 50,000 To 8% Debentures A/c 5,00,000 (Issue of debentures to fixed assets vendor)