Total Loss on Issue = 6,00,000 covers both discount on issue and premium payable on redemption. Premium on Redemption = 4,00,000. Discount on Issue = 6,00,000 - 4,00,000 = 2,00,000. Discount percent = 2,00,000 / 20,00,000 * 100 = 10%.
The following journal entry is recorded in the books of RST Ltd. on issue of debentures : Bank a/c Dr 18,00,000 Loss on issue of Debentures a/c Dr…
CUET UG 2022 — Accountancy Company Accounts
2022mcqmedium
The following journal entry is recorded in the books of RST Ltd. on issue of debentures :
Bank a/c Dr 18,00,000
Loss on issue of Debentures a/c Dr 6,00,000
To 14% Debentures 20,00,000
To Premium on Redemption of Debentunes 4,00,000
Debentures have been issued at a discount of :
Official previous-year question
Held on 20 Jul 2022 · Verified 13 Jul 2026.
Options
- A
5%
- B
10%
- C
15%
- D
30%
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