Kaveri Ltd. issued 10,000 8% debentures of ₹ 50 each at a discount of 6%. The full amount was payable on application

Kaveri Ltd. issued 10,000 8% debentures of ₹ 50 each at a discount of 6%. The full amount was payable on application. Applications were received for 12,000 debentures and allotment was made on pro-rata basis.

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

[Ans. Amount refunded ₹ 94,000.]