Grand Hotels Ltd.issued 30,000, 7% Debentures of Rs. 100 each at a discount of 5% redeemable at a premium of 5%. It decided to write off loss on issue of debentures first from Capital Reserve then from Securities Premium Reserve and balance from Statement of Profit and Loss. It has balances as follows: Capital Reserve – Rs. 80,000 and Securities Premium Reserve – Rs. 1,00,000. Pass the journal entry for writing off loss on Issue of Debentures.
