Z Ltd. issued 15,000, 12% Debentures of ₹100 each at a premium of 2% redeemable at a premium of 5%. In such a case:

Total Face Value of Debentures = $15,000\times 100=₹15,00,000$.When debentures are redeemable at a premium, that premium constitutes a future loss at the time of issue itself.
$$\text{Premium on Redemption}=5\%\text{ of }15,00,000=₹75,000$$
The journal entry passed at the time of issue includes:Debit: Loss on Issue of Debentures A/c by ₹75,000Credit: Premium on Redemption of Debentures A/c by ₹75,000The issue premium of 2% (₹30,000) goes to the Securities Premium Reserve and does not offset the premium on redemption calculation under standard accounting principles for the "Loss on Issue" ledger account debit.