Loss on Issue of Debentures equals the Premium payable on Redemption (the issue premium is credited to Securities Premium and is not a loss). Premium on Redemption = 15,000 x 100 x 5% = Rs.75,000. Therefore Loss on Issue of Debentures A/c is debited by Rs.75,000.
Z Ltd issued 15,000, 12% Debentures of Rs.100 each at a premium of 2% redeemable at a premium of 5% In such case:
CUET UG 2022 — Accountancy Company Accounts
2022mcqmedium
Z Ltd issued 15,000, 12% Debentures of Rs.100 each at a premium of 2% redeemable at a premium of 5% In such case:
Official previous-year question
Held on 16 Jul 2022 · Verified 13 Jul 2026.
Options
- A
Loss on Issue of debentures will be debited by Rs.75,000
- B
Loss on Issue of Debentures will be debited by Rs. 750
- C
Loss on Issue of Debentures will be debited by Rs. 30,000
- D
Premium on Redemption of Debentures will be credited by Rs.15,000
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