Question

Global Ltd.issued 10,000, 8% Debentures of ₹ 100 each redeemable at the end of 3 years at a premium of ₹ 9.
Pass the journal entries for writing off the Loss on Issue of Debentures. Also prepare Loss on Issue of Debentures Account.

Answer 1

Answer:

Global Ltd.issued 10,000, 8% Debentures of ₹ 100 each redeemable at the end of 3 years at a premium of ₹ 9.

Pass the journal entries for writing off the Loss on Issue of Debentures. Also prepare Loss on Issue of Debentures Account. hope it helps if any query contact me.... hope you are

Answer 2

Explanation:

calculation (formula) = Loss of Issue of debentures = Issue x Premium value per unit

= 10,000 x 9 % = 90,000 and written off for each year for 3 years will be (90,000/3) = 30,000