Which account needs to credited for writing off discount on issue of debentures over the span of debentures?

Profit and Loss A/c

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Discount on issue of debentures A/c

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Securities Premium A/c

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None of these

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Solution

The correct option is B
Discount on issue of debentures A/c

Discount on Issue of Debentures account needs to credited for writing off discount on issue of debentures over the span of debentures

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Similar questions

Which account needs to debited for writing off discount on issue of debentures over the span of debentures?

Q. On 1st April, 2013, ABC Ltd. issued 10,000 , 10% Debentures of ₹ 100 each at a discount of 4% redeemable after 5 years at a premium of 6% .
Pass the necessary journal entries for issue of debentures and writing off Loss on issue of Debentures. Also prepare Loss on issue of Debentures Account.

Q. Tetley Ltd. issued 10,000,9% Debentures of ₹ 100 each at a discount of 5% redeemable at the end of 5 years at a premium of 10%. Tetley Ltd. has a balance of ₹ 50,000 in Securities Premium Reserve . Loss on Issue of debentures is to be written off equally over the life of debentures.
Pass the journal entries for writing off the Loss on Issue of Debentures.

Q. When debentures are issued at a discount & redeemed at a premium, we route discount on issue of debentures a/c through on issue of debentures a/c.

A limited company issued ₹ 1,00,000, 9% Debentures at a discount of 6% on 1st April, 2017. These debentures are to be redeemed equally, spread over 5 annual instalments.

Pass the Journal entries for issue of debentures and writing off the discount.

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Which account needs to credited for writing off discount on issue of debentures over the span of debentures?

The correct option is B Discount on issue of debentures A/c Discount on Issue of Debentures account needs to credited for writing off discount on issue of debentures over the span of debentures

The correct option is B
Discount on issue of debentures A/c

Discount on Issue of Debentures account needs to credited for writing off discount on issue of debentures over the span of debentures