Pawan Hans Ltd. issued on 1st July, 2022, 10,000, 7% Debentures of ₹ 100 each for subscription at 10% premium payable ₹ 40 on application and balance on allotment. The debentures were subscribed and due amounts were received. Interest was payable on 31st March each year.
Pass the Journal entry for issue of debentures and interest for the year ended 31st March, 2023 and transfer the interest to Statement of Profit & Loss.
[Ans.: Interest – ₹ 52,500.]