Practicing Success
Based on following case, answer question : A Ltd issued 2000, 10% debenture of ₹100 each on April 1, 2019 at a discount of 10% redeemable at a premium of 10% after five years. Company purchased assets of the book value of ₹ 2,20,000 from B Ltd. at book value and agreed to make payment of purchase consideration by issuing another 2000, 10% Debentures of ₹100 each at a premium of 10% on above mentioned date only. |
Loss on issue of Debentures A/c to be written off our of statement of P and L will be: |
₹40,000 ₹60,000 ₹20,000 ₹10,000 |
₹20,000 |
The correct answer is Option (3) - ₹20,000 |