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 debenture account will be debited by Rs. 50,000
 

Option 2: Premium on Redemption of Debentures account credited by Rs. 50,000

Option 3: Premium of Redemption of Debentures  account will be credited by Rs. 1,00,000

Option 4: Securities premium account will be credited by Rs. 1,00,000

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
 

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 :

R Ltd. issued 10,000, 12% Debentures of Rs. 100 each at a discount of 5%. Discount on issue of debenture account will be ----------. Debenture account credited by --------

Option 1: Debited by Rs 50,000, Debentures credited by 10,00,000

Option 2: Credited by Rs 50,000 debentures account credited by 10,00,000

Option 3: Debited by Rs 50,000 Debentures account credited by Rs 9,50,000

Option 4: None of the above 

Question :

Intel Ltd. issued 10,000, 7% Debentures of  Rs. 100 each at a discount of 10%. It has Securities Premium Reserve of Rs.1,50,000.Discount on Issue of Debentures, i.e.,  Rs. 1,00,000 will be written off by passing the following entry

Option 1: Securities premium account debited by Rs 1,00,000 and credited discount on issue of debentures account 

Option 2: Debited profit and loss account  and credited discount on issue of debenture account by Rs 1,00,000

Option 3: Debited profit and loss adjustment account and credited discount on issue of debenture account 

Option 4: None  of theses