Advertisements
Advertisements
प्रश्न
On 1st April, 2025, Petromax Ltd. had issued ₹ 3,00,000, 9% Debentures at a discount of 6% redeemable at a premium of 4%. It has a balance in Securities Premium Account of ₹ 5,000 and a balance of ₹ 10,000 in the Capital Reserve. The debentures are to be redeemed equally over three annual instalments.
Prepare Loss on Issue of Debentures Account.
Advertisements
उत्तर
| LOSS ON ISSUE OF DEBENTURES ACCOUNT | |||||
|---|---|---|---|---|---|
| Dr. Date | Dr. Particulars | ₹ | Cr. Date | Cr. Particulars | ₹ |
| 2025 April 1 | To 9% Debentures A/c | 18,000 | 2026 March 31 | By Securities Premium A/c | 5,000 |
| To Premium on Redemption of Debentures A/c | 12,000 | By Statement of Profit & Loss (Finance Cost) | 25,000 | ||
| Total | 30,000 | Total | 30,000 | ||
The total Loss on Issue of Debentures is ₹ 30,000, consisting of:
Discount on Issue of Debentures = ₹ 3,00,000 × 6% = ₹ 18,000
Premium on Redemption = ₹ 12,000
The loss is first written off against the Securities Premium Account to the extent of ₹ 5,000. The remaining ₹ 25,000 is written off through the Statement of Profit & Loss.
Note: Capital Reserve cannot be used for writing off Loss on Issue of Debentures.
