Question

46. Globe Ltd. issues 20,000,9% debentures of ? 100 each at a discount
of 5% redeemable at the end of 5 years at a premium of 6%. For what
amount 'Loss on Issue of Debentures Account will be debited?​

Answer 1

Answer:

Bank account. dr. 1900000

To 9% debenture application

& allotment account. 1900000

9%debenture application

& allotment account. dr. 1900000

loss on issue of

debenture dr. 220000

Ton9% debentures a/c. 2000000

To security premium reserve. 120000