When debentures are issued at par and ar

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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Issue and Redemption of Debentures

Question:

When debentures are issued at par and are redeemable at a premium, the loss on such issue is debited to:

Options:

Statement of profit and loss.

Debentures applications and allotment account.

Loss on issue of debentures account

Debenture Redemption Reserve

Correct Answer:

Loss on issue of debentures account

Explanation:

The correct answer is Option (3) → Loss on issue of debentures account