On 1-4-2022, K.K Ltd. issued 500, 9% Debentures of ₹ 500 each at a discount of 4%, redeemable at a premium of 5% after three years

On 1-4-2022, K.K Ltd. issued 500, 9% Debentures of ₹ 500 each at a discount of 4%, redeemable at a premium of 5% after three years.

Pass necessary Journal Entries for the year ended 31-3-2023 assuming that interest is payable on 30th September and 31st March. The company closes its books on 31st March every year.

[Ans. Total Interest of ₹ 22,500 and loss on issue of debentures ₹ 22,500 will be transferred to Statement of Profit & Loss on 31st March, 2023.]