Blue Prints Ltd. purchased a building worth Rs. 1,50,000, Machinery worth Rs. 1,40,000 and Furniture worth Rs. 10,000 from XYZ Co. and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000.

Calculate the Goodwill/Capital Reserve to be recorded by Blue Print Ltd.

Debenture Application & Allotment A/c Dr. 210,000

Loss on Issue of Debentures A/c Dr. 10,000

To 9% Debenture A/c 2,00,000

To Premium on Redemption of Debentures A/c 10,000

To Securities Premium Reserve A/c 10,000

(Debenture application money transferred to debentures account)

Accountant has passed the above journal entry. Identify the correct situation of terms and conditions of issue and redemption of debentures,

Which statements are wrong about debentures?

(A) Debenture is a part of owned capital.

(B) The debentures cannot be issued at a discount of more than 10% of the face value.

(C) Debentures cannot be converted into shares.

(D) Redeemable debentures are those debentures, which are payable on the expiry of the specific period.

Choose the correct answer from the options given below:

When debentures are issued at par and redeemable at a premium, the premium payable on redemption is debited to:

Debentures can be issued at

(A) Par

(B) Premium

(C) Discount

(D) Transaction value

Choose the correct answer from the options given below:

Following Journal entry is to be passed when interest on debentures become due and tax is deducted at source:

On May 01, 2025, Kaur Ltd. issued 10,000, 8% debentures of Rs. 100 each at a discount of 10% redeemable at a premium of 10%. The issue was fully subscribed and the amount was duly received. Calculate the amount of loss on issue of debentures.