A company issued 30,000, 9% Debenture of ₹100 each, at 5% premium. These debentures are to be redeemed at 15% premium at the end of 4 years. Existing Balance in Securities Premium before Issue of Debentures was ₹80,000. Identify the amount to be credited to Statement of Profit and Loss for the year on issue of Debentures.
₹3,70,000
Premium on Issue = 30,000 × ₹5 = ₹1,50,000 Premium on Redemption = 30,000 × ₹15 = ₹4,50,000 Amount credited to Statement of Profit and Loss = ₹4,50,000.
Important Questions from Accounting for Debentures
Balance of Debenture Redemption Reserve A/c after the redemption of debenture is credited to:
Calculate the number of Debentures issued by A Ltd. for consideration other than cash:
‘Discount on issue of debenture’, which is to be written off under one operating cycle is shown under:
If the consideration for issue of Debentures is less than the amount of debentures issued, then the difference is:
When Debentures are issued at par and are redeemable at a premium, the Loss on such an issue is debited to:
