Pass necessary journal entries in the books of Karan Ltd. in each of the following cases: (i) 3,000, 8% Debentures of ₹100 each have been issued at par and are redeemable at par. (ii) 6,000, 8% Debentures of ₹100 each ar

Journal Entries in the Books of Karan Ltd. Particulars Debit (₹) Credit (₹) (i) Bank A/c Dr. 3,00,000 To 8% Debentures A/c 3,00,000 (Being debentures issued at par & redeemable at par) (ii) Bank A/c Dr. 6,00,000 Loss on Issue of Debenture A/c Dr. 30,000 To 8% Debentures A/c 6,00,000 To Premium on Redemption of 8% Debentures A/c 30,000 (Being issue of 8% debentures at par and repayable at 5% premium) (iii) Bank A/c Dr. 4,75,000 Discount on Issue of debentures A/c Dr. 25,000 To 8% Debentures A/c 5,00,000 (Being issue of debentures at 5% discount and redeemable at par) (iv) Bank A/c Dr. 1,90,000 Loss on issue of debentures A/c Dr. 8,000 Discount on Issue of debentures A/c Dr. 10,000 To 8% Debentures A/c 2,00,000 To Premium on Redemption of 8% Debentures A/c 8,000 (Being issue of debentures at a discount of 5% and payable at a premium of 4%) (v) Bank A/c Dr. 4,20,000 To 8% Debentures A/c 4,00,000 To Security Premium A/c 20,000 (Being issue of debentures at a premium of 5% and payable at par)