Raj Ltd. purchases furniture costing ₹ 2,20,000. It was agreed that the purchase consideration be paid by issue of 15% debentures of ₹ 100 each

Raj Ltd. purchases furniture costing ₹ 2,20,000. It was agreed that the purchase consideration be paid by issue of 15% debentures of ₹ 100 each. Assume debentures have been issued: (i) at par, and (ii) at a premium of 10%.

Give necessary journal entries.

[Ans. Number of Debentures issued in Case (I) 2,200, and Case (ii) 2,000.]