1. (Payment of Debenture Interest)

Zed Ltd. had issued Rs.2, 00,000, 10% debentures on which interest was payable half-yearly on 30th September and 31st March. Show the necessary journal entries relating to debenture interest for the year ended 31st March, 2011 assuming that all moneys were duly paid by the company. Tax deducted at source is 10%.

2. Indra Ltd. issued 10,000 debentures of Rs.100 each at a discount of 6%. The expenses on issue amounted to Rs.35,000. The debentures have to be redeemed at the rate of Rs.1,00,000 each year commencing with end of fifth year. How much discount and expenses should be written off each year?