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.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹15
When debentures are issued at a discount and are redeemable at a premium, Loss on Issue of Debentures is debited with discount on issue plus premium on redemption.
Discount on issue = 5% of ₹100 = ₹5
Premium on redemption = 10% of ₹100 = ₹10
Loss on issue of debenture = ₹5 + ₹10 = ₹15
NCERT (2026-27 edition): NCERT (2026-27 edition):
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