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A company issued 9% Debentures of ₹ 10,00,000 at 8% discount, redeemable at par. The debentures are to be redeemed by drawings method in the following manner: Year-end Amount (Face Value ) ( ₹) 2 1,00,000 3 2,00,000 4 3,00,000 5 4,00,000Calculate the amount of discount on issue of debentures to be written off each year.

Answer» A company issued 9% Debentures of ₹ 10,00,000 at 8% discount, redeemable at par. The debentures are to be redeemed by drawings method in the following manner:

Year-end Amount (Face Value ) ( ₹)

2 1,00,000

3 2,00,000

4 3,00,000

5 4,00,000

Calculate the amount of discount on issue of debentures to be written off each year.


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