On 1st April, 2022, Zubian Ltd. issued Rs. 10,00,000, 7% Debentures of Rs. 100 each at a premium 

of 6%, redeemable at a premium of 4% after five years. The company had a balance of Rs. 30,000 in Securities Premium Account.

(a) Pass necessary journal entries for issue of debentures and for writing off ‘Loss on Issue of Debentures’ utilising Securities Premium Account at the end of the first year itself. 

(b) Prepare ‘Loss on Issue of Debentures Account’ for the year ended 31st March, 2023. 

Marks-6, CBSE: 2023-24/Zone-1/Set-1/Q-24