A Ltd. issued a ₹100, 7% debenture at a discount of 5% redeemable at 10% premium after 3 years. Choose the amount to be shown as loss on issue of debenture account.

₹15

The correct answer is Option (3) - ₹15.

Journal entry for this-

Debenture Application & Allotment A/c Dr.   ₹95
Loss on Issue of Debentures A/c Dr.           ₹15 ( ₹5 Discount on issue + ₹10 premium on redemption)
        To Debentures A/c                                          ₹100(with nominal value of debenture)
        To Premium on Redemption of Debentures A/c  ₹10(with premium on redemption)

Thus, ₹15 will be shown in loss on issue of debentures account.