Following Journal entry is passed in case of: Debenture Application and Allotment A/ c Dr. Loss on Issue of Debenture A/c Dr.           To Premium on Redemption of Debentures A/c           To Debentures A/c

When debenture are issued at discount When debenture are issued at discount and redeemed at Premium When more amount is spent on advertisement of issue of debentures When debenture are redeem at discount

When debenture are issued at discount and redeemed at Premium

The correct answer is Option (2) → When debenture are issued at discount and redeemed at Premium  Loss on issue of debenture  ↓ Debited ↓ To show discount on issue    ;            Premium on redemption  ↓ Credited ↓  show redeemed at Premium