Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Issue and Redemption of Debentures

Question:

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.

Options:

Rs. 20,000.

Rs. 15,000.

Rs. 19,000.

Rs. 12,000.

Correct Answer:

Rs. 20,000.

Explanation:

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