1. Account Explanation: - The "Loss on Issue of Debentures" account accounts for the redemption premium that exceeds the premium received at issuance. - This account is established when debentures are issued and is subsequently adjusted or expensed over time. If sufficient reserves exist, the entire amount can be expensed in the current fiscal year.2. Journal Entries: - The initial entry debits the account with the total loss on issue, calculated as the redemption premium minus any premium on issue. - Subsequent entries credit the account as the loss is offset by the Securities Premium Account or other reserves. Loss on Issue of Debentures Account: \begin{center} \begin{tabular}{|l|c|c|} \hline Particulars & Dr Amount (₹) & Cr Amount (₹)
\hline Premium on Redemption of Debentures A/c Dr & 2,50,000 &
To Loss on Issue of Debentures A/c & & 2,50,000
\hline Securities Premium A/c Dr & 2,50,000 &
To Loss on Issue of Debentures A/c & & 2,50,000
\hline \end{tabular}\end{center}3. Outcome: - The "Loss on Issue of Debentures" account shows a balance of \( ₹ 0 \) at year-end, indicating it has been fully written off against the Securities Premium Account. - Should the Securities Premium Account have been insufficient, the remaining balance would have been deferred or charged to the Profit and Loss Account in subsequent periods.