A Ltd issued 50,00,000, 8% Debenture of Rs.100 at a discount of 6% on

1.	A Ltd issued 50,00,000, 8% Debenture of Rs.100 at a discount of 6% on April 1, 2000 redeemable at premium of 4% by draw of lots as under. 20,00,000 Debentures on March, 2002 20,00,000 Debentures on March, 2004 20,00,000 Debentures on March, 2005 Compute the amount of discount to be written-off in each year till debentures are paid. Also prepare discount/ loss on issue of debentures account.
Answer» A Ltd issued 50,00,000, 8% Debenture of Rs.100 at a discount of 6% on April 1, 2000 redeemable at premium of 4% by draw of lots as under. 20,00,000 Debentures on March, 2002 20,00,000 Debentures on March, 2004 20,00,000 Debentures on March, 2005 Compute the amount of discount to be written-off in each year till debentures are paid. Also prepare discount/ loss on issue of debentures account.

A Ltd issued 50,00,000, 8% Debenture of Rs.100 at a discount of 6% on April 1, 2000 redeemable at premium of 4% by draw of lots as under. 20,00,000 Debentures on March, 2002 20,00,000 Debentures on March, 2004 20,00,000 Debentures on March, 2005 Compute the amount of discount to be written-off in each year till debentures are paid. Also prepare discount/ loss on issue of debentures account.

Answer»

A Ltd issued 50,00,000, 8% Debenture of Rs.100 at a discount of 6% on April 1, 2000 redeemable at premium of 4% by draw of lots as under.

20,00,000 Debentures on March, 2002

20,00,000 Debentures on March, 2004

20,00,000 Debentures on March, 2005

Compute the amount of discount to be written-off in each year till debentures are paid. Also prepare discount/ loss on issue of debentures account.