On 1st April, 2022, Ardhaan Ltd. issued 10,000, 9% Debentures of ₹ 100 each at a discount of 5%, redeemable at a premium of 10% after five years. The company had a balance of ₹ 80,000 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 first year itself.

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

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