Sudha, Sudama and Sulochna were partners in a firm sharing  profits equally. On 31st March, 2020, Sudha retired. On the date of retirement ₹2,40,000 became due to her. Sudama and Sulochana agreed to pay Sudha in four equal yearly instalments plus interest @ 10% p.a. on the unpaid balance starting from 31st March, 2021. The firm closes its books on 31st March every year. Prepare Sudha’s loan account till it is fully paid

Pass necessary journal entries in the books of the company for issue of debentures and payment of interest for the year ended 31st March, 2024.

Marks-4, CBSE: 2024-25/Zone-5/Set-1/Q-22