S. Singh Limited obtained a loan of ₹ 5,00,000 from State Bank of India @ 10 % interest. The company issued ₹ 7,50,000, 10 % debentures of ₹ 100/- each, in favor of State Bank of India as collateral security. Pass necessary journal entries for the above transactions:
- When company decided not to record the issue of 10 % Debentures as collateral security.
- When company decided to record the issue of 10 % Debentures as collateral security.