Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at discount of 15% but redeemable at premium of 5%. the amount debited to loss on issue of debenture account is.

Rs. 20,000.

The correct answer is Option (1) → Rs. 20,000.

• Face value of debentures = ₹1,00,000

• Discount on issue = 15%

• Premium on redemption = 5%

Discount on Issue= 15% of 1,00,000 = 15,000

Premium on Redemption=5% of 1,00,000 = 5,000 

Loss on Issue of Debentures=15,000+5,000 = 20,000