An issue of Rs. 1,00,000 , 9\% debentures of Rs. 100 each is made at a discount of 15\% but redeemable at a premium of 5\% . The amount debited to the - Accountancy MCQ CUET Accountancy 2025 27 May Shift 2 2026 | ExamTest.live

mediumMCQCUET Accountancy 2025 27 May Shift 22026Accountancy

1 mark

An issue of Rs. 1, 00, 000, 9% debentures of Rs. 100 each is made at a discount of 15% but redeemable at a premium of 5% . The amount debited to the "Loss on Issue of Debentures Account" is:

Solution & Step-by-step Explanation

The total loss on the issue of debentures encompasses both the discount offered at the time of issue and the premium promised at redemption.Discount on Issue = 15% of 1, 00, 000 = Rs. 15, 000 Premium on Redemption = 5% of 1, 00, 000 = Rs. 5, 000 $ Total Loss on Issue = Discount + Premium on Redemption $ Total Loss on Issue = 15, 000 + 5, 000 = Rs. 20, 000

Try it yourself before checking the explanation above.

An issue of Rs. 1, 00, 000, 9% debentures of Rs. 100 each is made at a discount of 15% but redeemable at a premium of 5% . The amount debited to the "Loss on Issue of Debentures Account" is:

Rs. 20,000

Rs. 15,000

Rs. 19,000

Rs. 12,000

Practice with timed mock tests and track your performance across Accountancy.