Question : If a debenture of Rs.100 is issued at Rs.106 and is redeemable at Rs.110, at the time of issue of debentures
A securities premium account will be:
Option 1: Debited by Rs 6
Option 2: Debited by Rs 10
Option 3: Credited by Rs 10
Option 4: Credited by Rs 6
Correct Answer: Credited by Rs 6
Solution : Answer = Credited by Rs 6
Bank A/c Dr. 106
To Deb. Application and allotment A/c 106
Deb. Application and Allotment A/c Dr 106
Loss on issue of Deb. A/c Dr. 10
To % Deb. A/c 100
To Securities Premium Reserve A/c 6
To Premium on Red. of Deb. A/c 10 Hence, the correct option is 4.
Question : If a debenture of Rs.100 is issued at Rs.106 and is redeemable at Rs.110, at the time of issue of debentures.
Loss on the issue of debentures account will be -------
Option 1: Debited by Rs 16
Option 4: Debited by Rs 6
Question :
Citizen Ltd. issued 10,000, 6% Debentures of Rs. 100 each at a discount of 10% redeemable at 10% premium. It has Securities Premium Reserve of Rs. 1,75,000. Loss on Issue of Debentures Rs. 2,00,000 will be written off by passing the following entry
Option 1: Debited securities premium with Rs 1,75,000 and credited loss on issue of debenture account Rs 1,75,000
Option 2: Debited securities premium reserve account with Rs 1,75,000 and debited surplus in profit and loss account Rs 25,000 and credited loss on issue of debenture account Rs 2,00,000
Option 3: Debited surplus in statement of profit and loss account Rs 2,00,000 and credited loss on issue of debentures account
Option 4: None of these
Debentures account will be credited by -----
Option 1: Rs 106
Option 2: Rs 110
Option 3: Rs 100
Option 4: Rs 94
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
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