Practicing Success
Practicing Success
CUET Preparation Today
| When debentures are issued at a discount and are redeemable at a premium, which of the following accounts is debited at the time of issue and with what amount? |
Premium on Redemption of Debentures A/c (Premium on Redemption) Loss on Issue of Debentures A/c (Discount on issue) Loss on Issue of Debentures A/c (Discount on issue +premium on redemption) None of these |
| Loss on Issue of Debentures A/c (Discount on issue +premium on redemption) |
| Issue at discount and redemption at premium Bank A/c Dr. To Debenture Application & Allotment A/c (Receipt of application money) Debenture Application & Allotment A/c Dr. Loss on Issue of Debentures A/c Dr. (with discount on issue plus premium on redemption) To Debentures A/c (with nominal value of debenture) To Premium on Redemption (with premium on redemption) of Debentures A/c (Allotment of debentures at a discountand redeemable at premium) |
