On 1st April, $\displaystyle 2024$ Divya Ltd. invited applications for issuing $\displaystyle 10,000$, $\displaystyle 8$% debentures of ₹ $\displaystyle 10$ each at a discount of $\displaystyle 6$%. These debentures were redeemable at a premium of $\displaystyle 10$% after five years. The issue was fully subscribed and the debentures were allotted in full to all the applicants. On 31st March, $\displaystyle 2025$ the company had a balance of ₹ $\displaystyle 9,000$ in its Securities Premium Account. Pass necessary journal entries for the issue of $\displaystyle 8$% Debentures and writing off Loss on issue of Debentures. Also prepare 'Loss on Issue of Debentures Account'.

Books of Divya Ltd. Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) $\displaystyle 2024$ Apr.1 Bank A/c Dr. $\displaystyle 94,000$ To Debenture Application and Allotment A/c $\displaystyle 94,000$ (Debenture application money received) ” Debenture Application and Allotment A/c Dr. $\displaystyle 94,000$ Loss on Issue of Debentures A/c Dr. $\displaystyle 16,000$ To $\displaystyle 8$% Debentures A/c $\displaystyle 1,00,000$ To Premium on Redemption of Debentures A/c $\displaystyle 10,000$ (Debenture application money transferred to debentures and premium on redemption of debentures account) $\displaystyle 2025$ Mar.31 Securities Premium A/c Dr. $\displaystyle 9,000$ Statement of Profit and Loss Dr. $\displaystyle 7,000$ To Loss on Issue of Debentures A/c $\displaystyle 16,000$ (Loss on issue of debentures written off) Dr. Loss on Issue of Debentures A/c Cr. Particulars Amount Particulars Amount (₹) (₹) $\displaystyle 2024$ $\displaystyle 2025$ Apr.1 To $\displaystyle 8$% Debentures A/c $\displaystyle 6,000$ Mar.31 By Securities $\displaystyle 9,000$ Premium A/c ” To Premium on $\displaystyle 10,000$ ” By Statement of $\displaystyle 7,000$ Redemption of Debentures Profit and Loss A/c $\displaystyle 16,000$ $\displaystyle 16,000$