Reliance Ltd. Purchased machinery costing ₹ 1,35,000. It was agreed that the purchase consideration be paid by issuing 9% Debentures of ₹ 100 each. Assume debentures have been issued (i) at par and (ii) at a Discount of 10 % Give necessary Journal entries.

Answer

Number of Debentures Issued -(i) 1,350; (ii) 1,500.