Question

When debenture are issued at par and are redeemable at premium, the loss on such an issue debited to:

• A. Profit and Loss A/c
• B. Debenture Application and Allotment A/c
• C. Discount on issue of debenture A/c
• D. Loss on issue of debenture A/c

Answer 1

The correct option is D Loss on issue of debenture A/c

When debenture are issued at par and are redeemable at premium, the loss on such an issue debited to Loss on issue of debenture A/c