Page 217 - ISCDEBK-12

Joint Stock Company—Issue of Debentures 8.11
2015
March 31 Statement of Profit and Loss (Finance Cost) ...Dr. 1,00,000
To Loss on Issue of Debentures A/c* 1,00,000
(Being 1/5th of loss on issue of debentures written off)

2016
March 31 Statement of Profit and Loss (Finance Cost) ...Dr. 1,00,000
To Loss on Issue of Debentures A/c 1,00,000
(Being 1/5th of loss on issue of debentures written off)

2017
March 31 Statement of Profit and Loss (Finance Cost) ...Dr. 1,00,000
To Loss on Issue of Debentures A/c 1,00,000
(Being 1/5th of loss on issue of debentures written off)

2018
March 31 Statement of Profit and Loss (Finance Cost) ...Dr. 1,00,000
To Loss on Issue of Debentures A/c 1,00,000
(Being 1/5th of loss on issue of debentures written off)

2019
March 31 Statement of Profit and Loss (Finance Cost) ...Dr. 1,00,000
To Loss on Issue of Debentures A/c 1,00,000
(Being 1/5th of loss on issue of debentures written off)
* Loss on Issue of Debentures ` 5,00,000 (i.e., 10% of ` 50,00,000) will be written off in five equal yearly instalments, i.e.,
` 1,00,000 each year.
Dr. LOSS ON ISSUE OF DEBENTURES ACCOUNT Cr.
Date Particulars ` Date Particulars `

2014 2015
June 1 To Premium on Redemption March 31 By Statement of Profit and Loss 1,00,000
of Debentures A/c 5,00,000 By Balance c/d 4,00,000
5,00,000 5,00,000
2015 2016
April 1 To Balance b/d 4,00,000 March 31 By Statement of Profit and Loss 1,00,000
By Balance c/d 3,00,000
4,00,000 4,00,000
2016 2017
April 1 To Balance b/d 3,00,000 March 31 By Statement of Profit and Loss 1,00,000
By Balance c/d 2,00,000
3,00,000 3,00,000
2017 2018
April 1 To Balance b/d 2,00,000 March 31 By Statement of Profit and Loss 1,00,000
By Balance c/d 1,00,000
2,00,000 2,00,000
2018 2019
April 1 To Balance b/d 1,00,000 March 31 By Statement of Profit and Loss 1,00,000