R. Ltd. issued 8,000, 13% Debentures of 100 each at a discount of 5% payable as follows:
On Application
25
On Allotment
25
On First and Final Call
The balance amount

Public applied for 6,000 debentures.
All the moneys were duly received.

Expenses
on issue of debentures amounted to 20,000.
Directors decided to write off 1/5th of
"Expenses on Issue A/c” and “Discount on Debentures Alc" from Statement of
P&L each year.
Pass journal entries (for first year only).