On 1st April, $\displaystyle 2022$, Centafit Ltd. issued $\displaystyle 2,000$, $\displaystyle 7$% Debentures of ₹ $\displaystyle 500$ each at a premium of $\displaystyle 10$%, redeemable at a premium of $\displaystyle 10$% after five years. The company had a balance of ₹ $\displaystyle 1,75,000$ in Securities Premium Account before the issue. (a) Pass 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.

Books of Centafit Ltd. JOURNAL Date Particulars L.F. Dr. Cr. Amount (`) Amount (`) $\displaystyle 2022$ a) Bank A/c Dr. $\displaystyle 11,00,000$ Apr $\displaystyle 1$ To Debenture Application & Allotment A/c $\displaystyle 11,00,000$ (Application amount received on $\displaystyle 2,000$, $\displaystyle 7$% Debentures.) “ Debenture Application & Allotment A/c Dr. $\displaystyle 11,00,000$ Loss on Issue of Debentures A/c Dr. $\displaystyle 1,00,000$ To $\displaystyle 7$% Debentures A/c $\displaystyle 10,00,000$ To Securities Premium A/c $\displaystyle 1,00,000$ To Premium on Redemption of Debentures A/c $\displaystyle 1,00,000$ (Application amount transferred to debentures a/c, securities premium a/c and provision for premium on redemption of debentures made.) $\displaystyle 2023$ Securities Premium A/c Dr. $\displaystyle 1,00,000$ Mar31 To Loss on Issue of Debentures A/c $\displaystyle 1,00,000$ (Loss on issue of debentures written off.) Dr. Loss on Issue of Debentures A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount (`) (`) $\displaystyle 2022$ To Premium on $\displaystyle 2023$ By Securities April $\displaystyle 1$ Redemption of March $\displaystyle 31$ Premium A/c $\displaystyle 1,00,000$ Debentures A/c $\displaystyle 1,00,000$ $\displaystyle 1,00,000$ $\displaystyle 1,00,000$ .