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प्रश्न
On 1st January, 2025, Kushal Ltd. issued 6,000, 8% Debentures of nominal (face) value of ₹ 100 each redeemable at 5% premium in equal proportions at the end of 5, 10 and 15 years. It has a balance of ₹ 20,000 in Securities Premium.
Pass Journal entries for Issue of Debentures and writing off Loss on Issue of Debentures.
[Hint: Dr. Securities Premium A/c by ₹ 20,000 and Statement of Profit & Loss (Finance Cost) by ₹ 10,000; Cr. Loss on Issue of Debentures A/c by ₹ 30,000.]
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उत्तर
| Journal Entries in the Books of Kushal Ltd. |
||||
|---|---|---|---|---|
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
| 2025 Jan. 1 | Bank A/c ...Dr. | 6,00,000 | ||
| Loss on Issue of Debentures A/c ...Dr. | 30,000 | |||
| To 8% Debentures A/c | 6,00,000 | |||
| To Premium on Redemption of Debentures A/c | 30,000 | |||
| (Being 6,000, 8% Debentures of ₹ 100 each issued at par and redeemable at 5% premium) | ||||
| 2025 Jan. 1 | Securities Premium A/c ...Dr. | 20,000 | ||
| Statement of Profit & Loss A/c (Finance Cost) ...Dr. | 10,000 | |||
| To Loss on Issue of Debentures A/c | 30,000 | |||
| (Being loss on issue of debentures written off, ₹ 20,000 against Securities Premium and balance ₹ 10,000 against Statement of Profit & Loss) | ||||
Working Note:
Face value of Debentures:
6,000 × ₹ 100 = ₹ 6,00,000
Premium on Redemption:
₹ 6,00,000 × 5% = ₹ 30,000
Since the debentures are issued at par, the entire loss on issue arises from the premium payable on redemption.
Loss on Issue of Debentures = ₹ 30,000
Less: Securities Premium available = ₹ 20,000
Balance written off to Statement of Profit & Loss (Finance Cost) = ₹ 10,000
