Warehouse rent paid for storage of finished inventory should be included in the cost of finished inventory .

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 To 11% Debentures A/c 10,00,000 (Call made consequent upon allotment of debentures issued at discount and redeemable at premium) Bank A/c Dr. 9,00,000 To Debenture Allotment A/c 9,00,000 (Allotment amount received)