On 1.4.2021 Y Ltd. invited applications for issuing 10,000, 9% debentures of ₹100 each at a discount of 6%. The entire amount was payable with application. Application for 12,000, 9% debentures were received. 9% debentures were allotted on pro-rata basis to all the applicants. Excess money received with applications was refunded.

On 31.3.2022 the company decided to write off discount on issue of debentures according to the provisions of the Companies Act, 2013.

Pass necessary journal entries for the above transactions in the books of the company.

Marks-3, CBSE:2022-23/Zone-2/Set-1/Q-17*

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