Observe the below given Journal Entry :-

Date	Particulars	Dr. ₹	Cr. ₹
	Debenture Application & Allotment A/c Dr.	4,70,000
	Loss on Issue of Debenture A/c Dr.	70,000
	To 8 % Debenture A/c		5,00,000
	To Premium on Redemption of Debenture A/c		40,000

Debentures are :-

Debenture Application & Allotment A/c Dr. 95,000

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

To 9% Debenture A/c 1,00,000

To Premium on Redemption of Debentures A/c 5,000

On the basis of the above entry, determine the rate of discount at which Rs. 1,00,000, 9% debentures of Rs. 100 each were issued if they were to be redeemed at a premium of 5%.

The following journal entry appears in the books of X Co. Ltd.

Bank A/c Dr. 4,75,000

Loss on issue of debenture A/c Dr. 75,000

To 12% Debentures A/c 5,00,000

To Premium on Redemption of Debenture A/c 50,000

Debentures have been issued at a discount of:

Select the pair which is true about debentures-

(A) Debenture is a part of owned capital.

(B) The payment of interest on debentures is a charge on the profits of the company.

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

(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:

1. (B) and (D) only
2. (A) and (D) only
3. (C) and (D) only
4. (A) and (B) only

To write off Discount on issue of debentures following entry is made

A debenture which is transferable merely by delivery is:

Issue of 8% debentures is shown under which sub-head in the balance sheet of a company: