Mercury Ltd. issued ₹ 10,00,000; 9% Debentures of ₹ 100 each at a discount of 6% on 1st April, 2022. These debentures are to be redeemed equally. Spread over 5 annual instalments. It had balance in Capital Reserve of ₹ 75,000.
Pass the Journal entries for issue of debentures and writing off the discount.
[Ans.: Dr. Statment of Profit & Loss (Finance Cost) and Cr. Discount on Issue of Debentures A/c by ₹ 60,000.]