(i) Journal Entry for Kiero Ltd.:
\[
\text{Bank A/c} \text{Dr.} 80,00,000
\text{Loss on Issue of Debentures A/c} \text{Dr.} 8,00,000
\text{To 9% Debentures A/c} 80,00,000
\text{To Premium on Redemption of Debentures A/c} 8,00,000
\]
Explanation: Debentures were issued at par and redeemable at 10% premium. Thus, premium on redemption = 10% of ₹ 100 = ₹ 10 per debenture. Total = ₹ 8,00,000.
(ii) Journal Entry for Naro Ltd.:
\[
\text{Bank A/c} \text{Dr.} 52,50,000
\text{Loss on Issue of Debentures A/c} \text{Dr.} 5,00,000
\text{To 10% Debentures A/c} 50,00,000
\text{To Securities Premium A/c} 2,50,000
\text{To Premium on Redemption of Debentures A/c} 5,00,000
\]
Explanation:
- Issue price = ₹ 105 per debenture (5% premium), so Bank = ₹ 52,50,000.
- Redeemable at 10% premium = ₹ 10 per debenture × 50,000 = ₹ 5,00,000 (loss).