When debentures are issued at discount and redeemable at a premium, ___________ account will be _________ for combined capital loss of issue and redemption of debentures.
When debentures are issued at discount and redeemable at a premium, ___________ account will be _________ for combined capital loss of issue and redemption of debentures.
Solution
✅ Correct Option: 2
Where debentures are issued at a discount and are also redeemable at a premium, both the discount and the premium payable are capital losses arising from the same issue. They are combined and recorded in a single Loss on Issue of Debentures Account, which is debited at the time of issue and later written off against Securities Premium or Statement of Profit and Loss.
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