MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Issued at Premium and Redeemed at Par

Loss on issue...

Question

Loss on issue of debentures is a capital loss and it is to be written-off gradually charged to ___

A

None of these

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Either Statement of profit & loss or Securities premium

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

C

Securities premium

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Statement of profit & loss

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B
Either Statement of profit & loss or Securities premium

Loss on issue of debentures is a capital loss and it is to be written-off gradually charged to either statement of profit and loss or securities premium account.

Suggest Corrections

thumbs-up

4

Similar questions

Q. Grand Hotels Ltd.issued 30,000, 7% Debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 5% . It decided to write off loss on issue of debentures first from Capital Reserve then from Securities Premium Reserve and balance from Statement of Profit and Loss. It has balances as follows:
Capital Reserve

—

₹ 80,000 and Securities Premium Reserve

—

₹ 1,00,000 .
Pass the journal entry for writing off loss on Issue of Debentures .

Q. Typhoo Ltd.issued 5,000, 9% Debentures of ₹ 100 each at a discount of 5% redeemable at the end of 5 years at a premium of 10%. Typhoo Ltd.has a balance of ₹ 2,00,000 in Securities Premium Reserve . Loss on Issue of debentures is to be written off equally over the life of debentures from Securities Premium Reserve to the extent possible.
Pass the journal entries for writing off the Loss on Issue of Debentures.

Q. On 1st January, 2017, Raha 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 ₹ 10,000 in Securities Premium Reserve.
Pass Journal entries. Also give Journal entries for writing off Loss on Issue of Debentures.

Q. Assertion :Premium received on issue of shares, is credited to share premium account but not to Profit and Loss account. Reason: Since share premium is not a trading profit, it is not distributed to shareholders.

When debentures are issued at premium & redeemed at premium, the loss on issue of debentures account is debited with ___

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Issued at Par and Redeemed at Par

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Issued at Premium and Redeemed at Par

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon