The journal entry for recognition of premium on redemption is :

Profit or loss A/c Dr

To Discount on issue of Debentures A/c

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Profit or loss A/c Dr

To Loss on issue of Debentures A/c

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Loss on Issue of Debentures A/c Dr.

To Premium on redemption of Debentures A/c

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None of these

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Solution

The correct option is C
Loss on Issue of Debentures A/c Dr.

To Premium on redemption of Debentures A/c

The journal entry for recognition of premium on redemption is :

Loss on issue of debentures A/c Dr.

To Premium on redemption of Debentures A/c

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Similar questions

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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:
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—

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—

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The journal entry for recognition of premium on redemption is :

The correct option is C Loss on Issue of Debentures A/c Dr. To Premium on redemption of Debentures A/c The journal entry for recognition of premium on redemption is : Loss on issue of debentures A/c Dr. To Premium on redemption of Debentures A/c

The correct option is C
Loss on Issue of Debentures A/c Dr.

To Premium on redemption of Debentures A/c

The journal entry for recognition of premium on redemption is :

Loss on issue of debentures A/c Dr.

To Premium on redemption of Debentures A/c