Company XYZ issues zero-coupon debentures worth ₹5,00,000, redeemable at ₹6,00,000 after 5 years. What is the journal entry at the time of issuance?
1
Bank A/C Dr. ₹5,00,000
To Debentures A/C ₹5,00,000
To Debentures A/C ₹5,00,000
2
Bank A/C Dr. ₹6,00,000
To Debentures A/C ₹6,00,000
To Debentures A/C ₹6,00,000
3
Bank A/C Dr. ₹5,00,000
Discount on Issue of Debentures A/C Dr. ₹1,00,000
To Debentures A/C ₹6,00,000
Discount on Issue of Debentures A/C Dr. ₹1,00,000
To Debentures A/C ₹6,00,000
4
No entry is necessary at issuance.