Debit balance as Cash Book is same as overdraft as per passbook .

Books of Strawberry Farms Ltd. Journal Particulars L.F. Debit Amount ₹ Credit Amount ₹ Bank A/c Dr. 10,00,000 To Debenture Application A/c 10,00,000 (Debentures application money received) Debenture Application A/c Dr. 10,00,000 To 11% Debentures A/c 10,00,000 (Application money transferred to 11% debentures account) Debenture Allotment A/c Dr. 9,00,000 Discount on issue of debentures Dr. 1,00,000 Loss on issue of debenture A/c Dr. 40,000 To 11% Debentures A/c 10,00,000 To Debenture redemption premium A/c 40,000 (Call made consequent upon allotment of debentures issued at discount and redeemable at premium) Bank A/c Dr. 8,80,000 To Debenture Allotment A/c 8,80,000 (Allotment amount received) Working Notes: Amount of discount on issue = 20,000 X 100 X 5% = 1,00,000 Loss on issue of debentures = 20,000 X 100 X 2% = 40,000 Alternatively, the discount on issue of debentures, can be combined with loss on issue of debentures A/c as both discount and redemption premium represent loss to the company. In that case the journal entries will be Dr. Cr. Debenture Allotment A/c Dr. 9,00,000 Loss on issue of debenture A/c Dr. 1,40,000 To 11% Debentures A/c 10,00,000 To Debenture redemption premium A/c 40,000 (Call made consequent upon allotment of debentures issued at discount and redeemable at premium)