on 1st April 2015 P ltd issued 6000 12% debentures of Rs100 each at par redeemable at premium of 7% - Accountancy - Issue and Redemption of Debentures

Question

on 1st April 2015 P ltd issued 6000 12% debentures of Rs100 each at
par redeemable at premium of 7% The debentures were to be redeemed
at the end of third year Prepare loss on issue of 12% debentures
account

Shruti Mishra · Accepted Answer

Dear Student,

Loss on Issue of Debentures
Account

Dr
Cr

Date
Particulars
J F
Amount
Rs
Date
Particulars
J F
Amount
Rs

Apr 01
To Premium on Issue of 12% Debentures A/c

42,000
Mar 31
By Profit & Loss A/c

42,000

Loss on issue of debenture = 6000 x 1000 x 7 % = 42,000
Regards

Loss on Issue of Debentures Account
Dr.				Cr.
Date	Particulars	J.F.	Amount Rs		Date	Particulars	J.F.	Amount Rs

Apr. 01	To Premium on Issue of 12% Debentures A/c		42,000		Mar. 31	By Profit & Loss A/c		42,000

			42,000					42,000

on 1st April 2015 P ltd issued 6000 12% debentures of Rs100 each at par redeemable at premium of 7%. The debentures were to be redeemed at the end of third year. Prepare loss on issue of 12% debentures account