Journal Entries

Bank A/c Dr. 1,05,000 Loss on Issue of Debentures A/c Dr. 5,000 To 10% Debentures A/c 1,00,000 To Securities Premium A/c 10,000 (Being issue of 1,000 debentures of ₹100 each at 5% premium, redeemable at 10% premium)

Bank A/c Dr. 5,50,000 To 10% Debentures A/c 5,00,000 To Securities Premium A/c 50,000 (Being issue of 5,000 debentures of ₹100 each at 10% premium, redeemable at par)