On 1st April, 2021, Kant Ltd. issued 8,000, 12% Debentures of ₹ 100 each, redeemable at par after five years. The issue was fully subscribed.

According to the terms of issue, interest on debentures is payable annually on 31st March. Tax deducted at source is 20%.

You are required to pass journal entries to record the transactions of interest on debentures only for the year 2022-23

Solution