Best Barcode Ltd. took a loan of ₹ 5,00,000 from a bank giving ₹ 6,00,000, 9% Debentures as collateral security. Pass Journal entries regarding issue of debentures, if any, and show this loan in the Balance Sheet of the company.
The rate of interest on which commercial banks borrow money from RBI to meet their short term credit needs is known as:
Zee Ltd. Issued 10,000, 105 Debentures of ₹ 100 each as collateral security for a loan of ₹ 8,00,000 from Dena Bank. The company was unable to repay the loan which interest payable was ₹ 2,00,000 as on 31 March, 2019. Dena Bank, on 31st March, 2019, exercised the right vested in it by way of debentures being issued as collateral Security. Pass Journal entries in the books of Zee Ltd on 31st March, 2019.
