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. At the time of writing off the loss on issue of debentures statement of profit and loss account will be debited/credited with ____________.
Option 1: Credited with Rs. 20,000
Option 2: Debited with Rs. 30,000
Option 3: Debited with Rs. 20,000
Option 4: Credited with Rs. 30,000
Correct Answer: Debited with Rs. 20,000
Solution : Answer = Debited with Rs. 20,000
Loss on issue of debentures Rs. 2,00,000 X 5% = Rs.10,000 + Rs. 2,00,000 X 10% = Rs. 20,000 Loss on issue of debentures = Rs. 30,000 Written off from securities premium = Rs. 10,000 From profit and loss Account = Rs. 20,000 Securities premium A/c Dr 10,000 Profit and loss account Dr 20,000 To loss on issue of Debentures A/c 30,000 Hence, the correct option is 3.
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 : 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 _____________.
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
Question : On 1st April, 2018, RJ. Ltd. issued Rs. 10,00,000, 9% Debentures of Rs. 100 each at a discount of 10%. These debentures were redeemable at a premium of 5% after four years. Premium on Redemption of Debentures debited/credited with ______.
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