# A.Ltd. Issued 50,00,000, 8% Debenture of Rs 100 at a Discount of 6% on April 01, 2009 Redeemable at Premium of 4% by Draw of Lots as Under: - Accountancy

Numerical

A.Ltd. issued 50,00,000, 8% Debenture of Rs 100 at a discount of 6% on April 01, 2009 redeemable at premium of 4% by draw of lots as under:

20,00,000 Debentures on March, 2011

10,00,000 Debentures on March, 2013

20,00,000 Debentures on March, 2014

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

#### Solution

Loss on issue of debenture = 6% (discount on issue) + 4% (premium on redemption) = 10%

50,00,000 xx 100 xx 10/100 = 5,00,00,000

 At the end of Debenture Outstanding Ratio Loss to be written off every year March 2010 50,00,00,000 5 5,00,00,000 xx 5/18 = 1,38,88,889 March 2011 50,00,00,000 5 5,00,00,000 xx 5/18 = 1,38,88,889 March 2012 30,00,00,000 3 5,00,00,000 xx 3/18 = 83,33,333 March 2013 30,00,00,000 3 5,00,00,000 xx 3/18 = 83,33,333 March 2014 20,00,00,000 2 5,00,00,000 xx 2/18 = 55,55,556 18 Rs 5,00,00,000

Loss on Issue of Debenture Account

 Dr. Cr. Date Particulars J.F. Amount Rs Date Particulars J.F. Amount Rs 2009 April 01 Debenture 5,00,00,000 2010 March 31 Profit and Loss 1,38,88,889 Balance c/d 3,61,11,111 5,00,00,000 5,00,00,000 2010 April 01 Balance b/d 3,61,11,111 2011 March 31 Profit and Loss 1,38,88,889 Balance c/d 2,22,22,222 3,61,11,111 3,61,11,111 2011 April 01 Balance b/d 2,22,22,222 2012 March 31 Profit and Loss 83,33,333 Balance c/d 1,38,88,889 2,22,22,222 2,22,22,222 2012 April 01 Balance b/d 1,38,88,889 2013 March 31 Profit and Loss 83,33,333 Balance c/d 55,55,556 1,38,88,889 1,38,88,889 2013 April 01 Balance b/d 55,55,556 2014 March 31 Profit and Loss 55,55,556 55,55,556 55,55,556
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#### APPEARS IN

NCERT Class 12 Accountancy - Company Accounts and Analysis of Financial Statements
Chapter 2 Issue and Redemption of Debentures
Numerical Questions | Q 14 | Page 137