Question

Global Ltd. issued 10,000, 8% Debentures of ₹ 100 each redeemable in four equal instalments by draw of lots from the end of 3 years at a premium of ₹ 9.
Pass the Journal entries for writing off the Loss on Issue of Debentures. Also prepare Loss on issue of Debentures Account.

Answer 1

In the books of Raha Ltd. Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
By the end of year of Allotment	Statement of Profit & Loss A/c	Dr.		90,000
	To Loss on Issue of Debentures A/c				90,000
	(Being loss on issue of debentures written off)

Dr.	Loss on Issue of Debentures A/c						Cr.
Date		Particulars	Amount (₹)	Date	Particulars	Amount (₹)
On the date of Issue		To 8% Debentures A/c	90,000	By the end of Year of allotment	By Statement of Profit & Loss A/c	90,000
			90,000			90,000