Question

T. D. Ltd. issued ₹ 10,00,000, 9% debentures at a discount of 10%, redeemable at a certain rate of premium. On the issue of these 9% debentures, the premium on redemption of debentures account was credited by ₹ 1,00,000. The amount of ‘loss on issue of debentures’ was ______.

पर्याय

• ₹ 1,00,000

• ₹ 2,00,000

• ₹ 3,00,000

• Nil

Answer 1

T. D. Ltd. issued ₹ 10,00,000, 9% debentures at a discount of 10%, redeemable at a certain rate of premium. On the issue of these 9% debentures, the premium on redemption of debentures account was credited by ₹ 1,00,000. The amount of ‘loss on issue of debentures’ was ₹ 2,00,000.

Explanation:

The total ‘loss on issue of debentures’ is the sum of the discount on issue and the premium on redemption.

Discount on Issue = `10,00,000 xx 10/100`

= 1,00,000

Premium on Redemption: Given as the amount credited to the ‘Premium on Redemption’ account = 1,00,000

Total Loss = Discount + Premium

= 1,00,000 + 1,00,000

= 2,00,000