A company issued 10,000 12% Debentures of ₹100 each at a discount of 5%, redeemable at a premium of 5%. What is the total Loss on Issue of Debentures?
Answer and explanation
Correct answer: C. ₹1,00,000
- Step 1: Calculate discount on issue: .
- Step 2: Calculate premium payable on redemption: .
- Step 3: Combine both components into Loss on Issue of Debentures: .
Answer
₹1,00,000.
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