Y Ltd. issued on 1st April, 2021, 20,000, 9% Debentures of ₹ 100 each at 4% discount redeemable after four years at a premium of ₹ 5

Y Ltd. issued on 1st April, 2021, 20,000, 9% Debentures of ₹ 100 each at 4% discount redeemable after four years at a premium of ₹ 5. All the debentures were subscribed. During the year ended 31st March, 2022, the company incurred a loss of ₹ 70,000. It has balance of ₹ 1,50,000 in Capital Reserve.

Pass the Journal entries for issue of debentures and writing off Loss on Issue of Debentures.

[Ans. Loss on Issue ₹ 1,80,000; Entire amount of Loss on Issue will be written off from Statement of Profit & Loss.]