Y Ltd issued 50,000, 12% Debentures of Rs 10 each at a discount of 10%. As per the terms of issue,
debentures are to be redeemed at the end of 5 years. How much amount of discount would be written off from the statement of P & L every year?
Answer & explanation
Correct answer: option 3
"Discount - Rs 1 ( 10% of Rs10)* 50000= Rs 50,000.
Amount to be written off every yer= 50,000/5=10,000"
Amount to be written off every yer= 50,000/5=10,000"