  The issue of black hole entropy is reexamined within a finite lattice
framework along the lines of Wheeler, 't Hooft and Susskind, with an additional
criterion to identify physical horizon states contributing to the entropy. As a
consequence, the degeneracy of physical states is lower than that attributed
normally to black holes. This results in corrections to the Bekenstein-Hawking
area law that are logarithmic in the horizon area. Implications for the
holographic entropy bound on bounded spaces are discussed. Theoretical
underpinnings of the criterion imposed on the states, based on the `quantum
geometry' formulation of quantum gravity, are briefly explained.
