Motilal & Co. Ltd. issued 1,00,000, 8% Debentures of 1,000 each on 1st Jan., 2023. The debentures were issued at a premium of 5% and the amount was payable as follows: 20% with application, 30% (including 5% premium) on allotment payable on 25th Jan. and the balance on 20th February. Applications were received for 105 debentures. Give the necessary journal entries regarding issue and show as to how these transactions will appear in the Balance Sheet?
Ans. Journal total 2,12,000; Cash at Bank 1,05,000]​