On 1st January, 2018, Raha Ltd. issued 6,000, 8% Debentures of nominal (face) value of ₹ 100 each redeemable at 5% premium in equal proportion at the end of 5, 10 and 15 years. It has a balance of ₹ 10,000 in Securities Premium.
Pass Journal entries. Also give Journal entries for writing off Loss on issue of Debentures.
[Hint: Dr. Securities Premium A/c by ₹ 10,000 and Statement of Profit & Loss (Finance Cost) by ₹ 20,000; Cr. Loss on Issue of Debentures A/c by ₹ 30,000.]