Q.Vishal Steels Ltd issued 2,000, 9% Debentures of ₹100 each at par, the full amount being payable on application, redeemable at par after five years. Pass the necessary journal entries for the issue.

A debenture is a written acknowledgement of a company's debt, usually carrying a fixed rate of interest. In CBSE Class 12 Accountancy, Issue of Debentures covers how a company records debentures issued for cash (at par, at a premium, or at a discount, received in a lump sum or by instalments) and for consideration other than cash (to vendors for assets purchased) as well as as collateral security for a loan. …