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
