Question : Loss on issue of Debentures arises when

Option 1: Debentures are issued at par and redeemable at par 

Option 2: Debentures are issued at a premium redeemable at par 

Option 3: Debentures are issued at premium redeemable at premium

Option 4: All of the above

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 : 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