A Ltd. purchased machinery for a book value of ₹ 4,00,000. The consideration was paid by issue of 10% Debentures of ₹ 100 each at a discount of 20%. The Debenture Account will be credited by what amount?

₹320000 ₹480000 ₹400000 ₹500000

₹500000

When debentures are issued at a discount, the entry will be Vendors Dr.    4,00,000 Discount on Issue of Debenture A/c Dr.   1,00,000       To Debentures A/c  5,00,000