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Commerce · Q1743

Accounting

Graduate and Post Graduate · Commerce · question 1743

Q1743

A company issued Rs. 1,00,000 worth of 71/2\% Debentures of Rs. 100 each at a discount of 5%. These debentures are repayable after 10 years in a lum-sum at a premium of 5%. The amount of loss on issue of debentures to be written-off each year will be

A company issued Rs. 1,00,000 worth of  Debentures of Rs. 100 each at a discount of 5%. These debentures are repayable after 10 years in a lum-sum at a premium of 5%. The amount of loss on issue of debentures to be written-off each year will be
A.
Rs. 1,000
Answer
B.
Rs. 5,000
C.
Rs. 500
D.
Rs. 1,500

Answer: Option A

Solution

Answer: Option A
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