S. Singh Limited obtained a loan of ₹ 5,00,000 from State Bank of India @ 10% interest. The company issued ₹ 7,50,000, 10% debentures of ₹ 100 each, in favour of State Bank of India as collateral security

S. Singh Limited obtained a loan of ₹ 5,00,000 from State Bank of India @ 10% interest. The company issued ₹ 7,50,000, 10% debentures of ₹ 100 each, in favour of State Bank of India as collateral security. Pass necessary journal entries for the above transactions:

(i) When company decided not to record the issue of 10% Debentures as collateral security.

(ii) When company decided to record the issue of 10% Debentures as collateral security.