Question

On 1^st April 2015, P Ltd. Issued 6,000 12% Debentures of ₹ 100 each at par redeemable at a premium of 7%. The Debentures were to be redeemed at the end of the third year. Prepare Loss on the issue of 12% Debentures Account.

Answer 1

Loss on Issue of 12% Debentures Account 

Dr.					Cr.
Date	Particulars	Amount(₹)	Date	Particulars	Amount(₹)
2015			2016
April 01	To 12% Debentures A/c	42,000	March 31	By Statement of Profit & Loss A/c	14,000
			March 31	By Balance c/d	28,000
		42,000			42,000
2016			2017
April 01	To Balance b/d	28,000	March 31	By Statement of Profit & Loss A/c	14,000
			March 31	By Balance c/d	14,000
		28,000			28,000
2017			2018
April 01	To Balance b/d	14,000	March 31	By Statement of Profit & Loss A/c	14,000
		14,000			14,000