Question : BG Ltd. issued 2,000, 12% Debentures of  Rs. 100 each on 1st April 2012. The issue was fully subscribed. According to the terms of issue, interest on the debentures is payable half-yearly on 30th September and 31st March. Calculate the amount of interest to be written off at the end of the year from the statement of profit and loss account.

Option 1: Rs. 12,000

Option 2: Rs. 10,800

Option 3: Rs. 24,000

Option 4: None of the above 
 

Question : KTR Ltd., issued 365, 9% Debentures of Rs. 1,000 each on 4th March, 2016 at 6% discount, redeemable at 5% premium. Loss on issue of Debentures debited/credited with _____________.

Option 1: Loss on issue of debentures account debited with Rs.36,500

Option 2: Loss on issue of debentures credited with Rs.41,150
 

Option 3: Loss on issue of Debentures debited with Rs. 41,150
 

Option 4: Loss on issue of debentures debited with Rs. 40,150
 

Question : KTR Ltd., issued 365, 9% Debentures of Rs. 1,000 each on 4th March, 2016 at 6% discount, redeemable at 5% premium. Loss on issue of Debentures debited/credited with _____________.

Option 1: Loss on issue of debentures account debited with Rs.36,500

Option 2: Loss on issue of debentures credited with Rs.41,150
 

Option 3: Loss on issue of Debentures debited with Rs. 41,150
 

Option 4: Loss on issue of debentures debited with Rs. 40,150
 

Question : Home Products Ltd. issued on 1st April, 2019, 10,000, 9% Debentures of Rs. 100 each at a premium of 10% redeemable at a premium of 5% after 5 years. Issue price was payable along with application.
Which of the following statements is correct?

Option 1: Loss on issue of debentures account will be debited by Rs. 1,00,000

Option 2: Loss on issue of debentures account credited by Rs. 50,000

Option 3: Loss on issue of debentures  account are to  be written off from securities premium account by Rs. 50,000

Option 4: Premium on Redemption of debentures debited by Rs. 50,000
 

Question : Home Products Ltd. issued on 1st April, 2019, 10,000, 9% Debentures of Rs. 100 each at a premium of 10% redeemable at a premium of 5% after 5 years. Issue price was payable along with application.
Which of the following statements is correct?

Option 1: Loss on issue of debentures account will be debited by Rs. 1,00,000

Option 2: Loss on issue of debentures account credited by Rs. 50,000

Option 3: Loss on issue of debentures  account are to  be written off from securities premium account by Rs. 50,000

Option 4: Premium on Redemption of debentures debited by Rs. 50,000