Question : KTR Ltd., issued 365, 9% Debentures of Rs. 1,000 each on 4th March, 2016 at 6% discount, redeemable at 5% premium. Loss on issue of Debentures debited/credited with _____________.
Option 1: Loss on issue of debentures account debited with Rs.36,500
Option 2: Loss on issue of debentures credited with Rs.41,150
Option 3: Loss on issue of Debentures debited with Rs. 41,150
Option 4: Loss on issue of debentures debited with Rs. 40,150
Correct Answer: Loss on issue of debentures debited with Rs. 40,150
Solution : Answer = Loss on issue of debentures debited with Rs. 40,150
Loss on issue of debentures = Rs. 21,900 (Rs. 3,65,000 X 6%) = Rs. 18,250 (Rs. 3,65,000X 5%) Total = Rs. 40,150
Question : On 1st April, 2019, Moonlight Ltd. issued 1,000, 9% Debentures of Rs. 200 each at a discount of 5% redeemable after 5 years at a premium of 10%. All the debentures were subscribed and allotment was made. The balance in Securities Premium Reserve is Rs. 10,000.
Question :
Citizen Ltd. issued 10,000, 6% Debentures of Rs. 100 each at a discount of 10% redeemable at 10% premium. It has Securities Premium Reserve of Rs. 1,75,000. Loss on Issue of Debentures Rs. 2,00,000 will be written off by
Intel Ltd. issued 10,000, 7% Debentures of Rs. 100 each at a discount of 10%. It has Securities Premium Reserve of Rs.1,50,000.Discount on Issue of Debentures, i.e., Rs. 1,00,000 will be written off by passing the following
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