Deepak Ltd. purchased furniture for ₹ 2,20,000 from M/s Furniture Mart. 50% of the amount was paid to Furniture Mart by accepting a bill of exchange

Deepak Ltd. purchased furniture for ₹ 2,20,000 from M/s Furniture Mart. 50% of the amount was paid to Furniture Mart by accepting a bill of exchange and for the balance the company issued 9% debentures of ₹ 100 each at a premium of 10% in favour of Furniture Mart.

Pass necessary journal entries in the books of Deepak Ltd. for the above transactions.

[Ans. Debentures issued of the face value of ₹ 1,00,000; Securities Premium ₹ 10,000.]