Question

Shivalik Ltd. issued 7% Debentures of ₹ 100 each at a discount of 5% on 1st April, 2023. Discount on issue of debentures, ₹ 1,00,000 was completely written off through Statement of Profit and Loss on 31st March, 2024. On issue of debentures, 'Debentures Account'was credited with

Options

• ₹ 10,00,000.

• ₹ 20,00,000.

• ₹ 19,00,000.

• ₹ 1,00,000.

Answer 1

₹ 20,00,000.

Explanation:

Discount of 5% amounts to ₹1,00,000.

Face Value = `(1,00,000 × 100)/5 = 20,00,000`

Therefore, Debentures A/c is credited with ₹ 20,00,000.