Question:medium
Pass necessary journal entries for issue of debentures for the following transactions:
(i) AS Ltd. issued 60,000, 9% Debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 5%.
(ii) WS Ltd. issued 30,000, 9% Debentures of ₹ 100 each at par, redeemable at a premium of 10%.
Pass necessary journal entries for issue of debentures for the following transactions:
(i) AS Ltd. issued 60,000, 9% Debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 5%.
(ii) WS Ltd. issued 30,000, 9% Debentures of ₹ 100 each at par, redeemable at a premium of 10%.
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When debentures are redeemable at a premium, the premium on redemption is a loss at the time of issue. Create "Loss on Issue of Debentures A/c" and "Premium on Redemption of Debentures A/c" to account for this.
Updated On: Feb 26, 2026
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