K K Limited obtained a loan of Rs. 10,00,000 from State Bank of India @ 9 % interest. The company issued Rs. 15,00,000, 9 % debentures of Rs. 100/- each, in favour of State Bank of India as collateral security. Pass necessary Journal entries for the above transactions:

(i) When company decided not to record the issue of 9 % Debentures as collateral security.

(ii) When company decided to record the issue of 9 % Debentures as collateral security.

Marks-3, CBSE:2017-18/Sample/Q-7