If a company issue Rs. 1,00,000, 9% debentures of Rs. 100 each at discount of 5% but redeemable at premium of 5% then what amount will be debited to Loss on Issue of Debentures Account?

When debentures are issued at a discount and are redeemable at a premium, the net loss on issue comprises both the discount allowed at issuance and the premium obligations payable at redemption.Given parameters:Nominal value (Face value) of debentures = $\text{Rs. }1,00,000$ Discount allowed on issue = $5\%\text{ of }1,00,000=\text{Rs. }5,00,000\times 0.05=\text{Rs. }5,000$ Premium payable on redemption = $5\%\text{ of }1,00,000=\text{Rs. }5,000$ The total value debited to the "Loss on Issue of Debentures Account" is:
$$\text{Total Loss}=\text{Discount on Issue}+\text{Premium on Redemption}$$
$$\text{Total Loss}=5,000+5,000=\text{Rs. }10,000$$