Sujata Ltd. invited applications for issuing 50,000, 9% debenture of ₹100 each at a discount of 10% redeemable at par after five years. The debentures were fully subscribed and all money was duly received. The company had a balance of ₹3,00,000 in Securities Premium Reserve which it decided to use for writing off the discount/loss on issue of debentures. It also decided to write off the remaining discount/loss on issue of debentures in the first year.

Pass the Journal entries for issue of debentures and for writing off discount/loss on issue of debentures.

Marks-3, CBSE:2021-22/Term-2/Zone-1/Set-1/Q-6*