Ashoka Ltd. purchased machinery costing ₹ 1,35,000. It was agreed that the purchase consideration be paid by issuing 12% debentures of ₹ 100 each

Ashoka Ltd. purchased machinery costing ₹ 1,35,000. It was agreed that the purchase consideration be paid by issuing 12% debentures of ₹ 100 each. Assume debentures have been issued, (I) at par, and (ii) at a discount of 10%.

Give necessary journal entries.

[Ans. Number of Debentures issued in case I 1,350, and Case II 1,500.]