Companies may issue the debentures as security against loans taken from banks/financial institutions as _______.
Meghnath Limited took a loan of Rs 1,20,000 from a bank and deposited 1,400, 8% debentures of Rs 100 each as collateral security along with primary security worth Rs 2 lakhs. Company again took a loan of Rs 80,000 after two months from a bank and deposited 1,000 , 8% debentures of Rs 100 each as collateral security. Record necessary journal entries. How will you show the issue of Debentures and Bank Loan in the balance sheet of the company?
X.Ltd. issued 15,000, 10% debentures of Rs 100 each. Give journal entries and the Balance Sheet in each of the following cases:
(i) The debentures are issued at a premium of 10%;
(ii) The debentures are issued at a discount of 5%;
(iii) The debentures are issued as a collateral security to bank against a loan of Rs 12,00,000; and
(iv) The debentures are issued to a supplier of machinery costing Rs 13,50,000.