Question

When does loss on issues of debentures arise?
Please tell

Answer 1

Answer: Same entry will be passed at the end of each year i.e. at the end of year 1 to 5. This loss on issue of Debentures(Rs. 15) is to be written off over the life of the debentures i.e. 5 years. The journal entry for writing off this loss will be same as given above for writing off discount on issue of shares.

Answer 2

Answer:

It is the correct answer for this question