Deepak Ltd. Purchaed furniture of ₹ 2,20,000 from M/s. Furniture Mart. 50% of the amount was paid to M/s. Furnishar Mart by accepting a Bill of Exchange and for the balance the company issued 9% Journal entries in the books of Deepak Ltd.

Explanation

(i) Dr. Furniture A/c and Cr M/s Furniture Mart by ₹ 2,20,000.
(ii) Dr. M/s Furniture Mart - ₹ 2,20,000, Cr. Bills Payable A/c - ₹ 1,10,000, 9% Debentures A/c ₹ 1,00,00 and Securities Premium Reserve A/c - ₹ 10, 000.