Mahaveer Ltd. secured an overdraft of ₹10,00,000 from the bank by issuing 12,000, 10% debentures of ₹100 each as collateral security. Pass the necessary journal entries to record the above transactions and prepare the ex

Journal Entries in the Books of Mahaveer Ltd. Date Particulars L.F. Amount ₹ (Dr.) Amount ₹ (Cr.) Bank A/c Dr. 10,00,000 To Bank Overdraft A/c 10,00,000 (Being overdraft credited by bank in account) Debentures Suspense A/c Dr. 12,00,000 To Debentures A/c 12,00,000 (Being Issue of 12,000 10% debentures of ₹100 each as collateral security for a bank overdraft of ₹10,00,000) Extract of Balance Sheet of Mahaveer Ltd. Particulars Note No. Amount (₹) I. Equity and Liabilities Non-Current Liabilities Long Term Borrowings 1 12,00,000 Current Liability Short Term Loan 2 10,00,000 II. Assets Non-Current Assets Other Non-Current Assets 3 12,00,000 Current Assets (Bank Balance) 4 10,00,000 Notes to Accounts: Long Term Borrowings: 12,000 10% Debentures of ₹100 each issues as collateral security as per contra ₹12,00,000. Short Term Loan: Bank Overdraft secured by issue of 12,000 10% debentures of ₹100 each as collateral security ₹10,00,000. Other Non-Current Assets: Debentures Suspense Account (issued as collateral security as per contra). ₹12,00,000. Current Assets: Bank Balance being bank overdraft credited by bank in account of Mahaveer Ltd.