Read the following information and answer the questions:

On 1^st April 2013, a company made an issue of 10,000, 9% debentures of ₹ 100 each at ₹92 per debenture. The terms of issue provided for redemption of 2,000 debentures every year starting from 31^st March 2016, either by conversion into equity shares of ₹20 each or by drawn of lot at par at companies option. On 31^st March 2016 Company's redeemed 2,000, 9% debentures by converting them into equity shares of ₹20 each.

Which A/c will be debited at the time when amount is received on issue of debentures?

Bank A/c

The correct answer is Option 3- Bank A/c.

(i) On receipt of the application money- 
Bank A/c Dr.
       To Debenture Application & Allotment A/c

(ii) On Allotment of debentures-
Debenture Application & Allotment A/c Dr.
        To Debentures A/c