On 1st April, 2021, Star Ltd. issued 8,000, 8% Debentures of ₹ 250 each at a premium of 5% and redeemable at a premium of ₹ 4 after 4 years

On 1st April, 2021, Star Ltd. issued 8,000, 8% Debentures of ₹ 250 each at a premium of 5% and redeemable at a premium of 4% after 4 years. According to the terms of issue, ₹ 100 was payable on application and balance on allotment. Record necessary entries regarding issue of debentures and writing off loss on issue of debentures.

[Ans. Entire Loss on Issue ₹ 80,000 will be written off from Security Premium.]