Practicing Success
T Ltd. issued 50,000, 12% Debentures of ₹100 each at a discount of 5% repayable at premium of 10% at the end of 5 year. Calculate the Loss on Issue of Debentures. |
₹2,50,000 ₹5,00,000 ₹50,00,000 ₹7,50,000 |
₹7,50,000 |
The correct answer is option 4- ₹7,50,000. Debentures = 50,000 Discount on issue = 50,00,000 x 5/100 Premium on redemption = 50,00,000 x 10/100 Total Loss on issue of Debentures = 2,50,000 + 5,00,000 |